Memory chips fall to the bottom, and face a major reshuffle

 

According to Samsung's data, Samsung's operating profit in the first quarter was 640.2 billion won, a year-on-year decrease of 95%. The semiconductor business fell by 49% year-on-year, of which memory chip revenue fell by another 56% year-on-year.

Before Samsung, SK Hynix reported a net loss of about 2.59 trillion won in the first quarter, and an operating loss of 3.40 trillion won, breaking records.

According to Micron's data, the second fiscal quarter of fiscal year 2023 (December 2022-February 2023) lost $2.31 billion.

The agency believes that the losses of the three giants may increase in the second quarter, because the price of memory chips is still falling, and the market has not recovered, so revenue will decline and inventory costs will also increase.

We must know that these three giants have won 80%+ share in the entire memory chip (DRAM+NAND) field, and are in a true monopoly position.

Anyone who is familiar with Samsung knows that Samsung is best at expanding production against the market in such a scenario, and then fighting a price war to kill its opponents, and then make a lot of money when the industry is rising.

For example, when memory chips were at a low point in the second half of the 1990s, Motorola, Texas Instruments, and Fujitsu all withdrew. Later, in the crisis of 2009, Germany's Qimonda withdrew, and then Elpida withdrew...