Samsung To Cut Chip Prices Significantly In The Coming Years
Samsung wants to act as a price-breaker in the coming year in order to increase its market share in the memory and flash memory market despite falling demand. While other manufacturers try to keep prices stable, Samsung will drastically reduce prices.
As the Taiwanese industry service DigiTimes reports, citing sources associated with memory manufacturers, observers expect that Samsung is planning “radical price cuts” in early 2023 in order to further expand its market share in the memory market. Samsung will not take the same steps as the competition – but exactly the opposite.
Samsung Working Differently From Competitors
While the competitor SK Hynix, also based in South Korea, and the US supplier Micron are currently reducing their production volumes in order to keep prices stable, and on the other hand are trying to reduce their expenses for expanding capacities and maintaining their systems, Samsung wants to go on the attack.
Samsung has used this tactic several times before. Prices were lowered while the other memory manufacturers tried desperately to stabilize prices in the market in order to avoid losses. This time, too, despite the sharp drop in demand, it should be the case that Samsung will accept losses in order to benefit from the difficulties faced by other providers.
Just recently, during the announcement of the latest business figures, it was made clear that the company intends to keep up or even increase spending on memory production. According to a report by BusinessKorea, the Korean group is currently planning to build new production lines for DRAM memory in South Korea.
Samsung can afford this primarily because the group is extremely broadly positioned with a large number of product lines and can cushion possible losses from the memory business more easily than its competitors, who are usually only active in a certain segment.
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