Commodity chips like DRAM often swing from undersupply to oversupply, and vice versa. Prices shot up considerably as supply failed to meet demand but this situation is expected to reserve in 2019. DigiTimes reports industry sources believe that new capacity expansions could lead to oversupply in 2019:
While the global DRAM market still remains robust currently, the recent capacity ramps by Micron Technology and the planned kick-off of commercial production by China-based Fujian Jin Hua Integrated Circuit and Innotron Memory (previously known as Hefei ChangXin) could lead to oversupply for the memory in 2019, according to industry sources.
Samsung Electronics and SK Hynix would be forced to overhaul their current profit-oriented business strategy as both firms believe that the booming memory market, which has continued for 2-3 years, is likely to be over by the end of 2018, according to a Korea-based Digital Times report.