The memory chip market is cyclical, so manufacturers try to regulate supply through production volumes and demand through pricing policy. Chinese company YMTC is expected to raise prices for its NAND memory by at least 10% from April this year, imitating foreign competitors.
Image source: YMTC
According to South China Morning Post, YMTC, Sandisk and Micron Technology have already notified their customers of the upcoming price increase for solid-state memory. The minimum price increase will be 10%, as reported by numerous Chinese sources. Most likely, as DigiTimes expects, the example of the listed market players will also be followed by South Korean companies Samsung Electronics and SK hynix.
These initiatives indicate that flash memory prices will indeed rise this year, as analysts had predicted. Since the end of last year, Micron, Samsung and SK hynix have been cutting production volumes of this type of product. These measures were intended to slow the decline in product prices. In Sandisk’s case, the rise in memory prices will also be dictated by higher customs duties in the United States. From this point of view, Micron Technology will be in a privileged position, since it has factories in the United States.
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