Samsung cuts capex by 25 percent to avoid bigger NAND chip glut

Posted on Friday, November 02 2018 @ 11:24 CET by Thomas De Maesschalck
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Samsung Electronics sees an end to the two-year boom in memory chips and has slashed its 2018 capital expenditures (capex) by more than a quarter. The South Korean giant foresees weaker demand for memory chips during the year-end holiday season. The reduction in capacity expansion will help to avoid a glut of NAND flash memory chips, but could result in higher prices for consumers. Prices of some NAND flash memory chips are currently at two-year lows and are expected to drop further as new production capacity comes online in 2019.
“NAND (flash memory) chip prices will further decline through the first half of next year ... (as) Toshiba’s new production line will start and Hynix starts mass production of one of its NAND lines,” said Song Myung-sup, an analyst at HI Investment & Securities.

“Oversupply is expected to continue.”
Full details at Reuters.

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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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