[Hardware] Samsung on the verge of bankruptcy because of RAM memories?

[FNX Magokiler]

We've been talking about the plummeting price of RAM for months due to low demand. There is an excess supply and the demand is low, which has forced the price to drop to give them an outlet. Samsung has presented its accounts and, due to RAM, presents losses.

Currently, there are few manufacturers of chips for RAM memory. We have SK Hynix, Micron and Samsung, mostly in the market. These three companies would have agreed to reduce production to raise prices. The reason for this pact is that they would be selling the memory chips at a loss.

If you search, you can find 16 GB DDR4 kits on the market for between 50-60 euros, which are ridiculous prices. We can even see 32 GB DDR4 kits below 100 euros. They are quite ridiculous prices, the result of low demand today.

All the alarms turned on by the South Korean company
Business Korea is reporting that Samsung's DS division, which handles the semiconductor business, is suffering heavy losses. During the first quarter, the company registered losses amounting to 3.2 million euros.

As reported by this medium, they register estimated losses between 7.23-10.32 million euros for the second quarter. Previous preliminary data spoke of about 3 million euros of losses. In the end, according to analysts, the losses would be much larger.

On the other hand, the average operating profit margin would be 3.6%, falling for the first time since 2008 from 5%. The operating profit for this year would be about 6.6 million euros. It should be noted that in 2022 operating profits of 187 million euros were achieved. We are talking about a drop close to 78%.

 

 

We remember again that we are talking about the semiconductor division of Samsung, not the entire company. The DS division is focused on manufacturing memory chips for RAM and SSD.

The market demand for SSDs and RAM memories is still low. This would be behind the losses of this division of the South Korean company. Despite this disastrous data, it would be impossible to close this division. We remember that there is an oligopoly and it would be a transitory situation.

Samsung hopes that with reduced production and inventory, along with increased demand, the situation will change. Specifically, they hope that the demand for memory for artificial intelligence will manage to reverse the situation.

It seems that the second half of the year will be better. Although analysts expect losses for the third quarter, they would be much lower than in previous quarters. In addition, it is expected that by the end of the year it will return to profit.

DDR5 and HBM would "save" this division
They suggest that the third quarter would be the last in negative. DDR5 memory for consumption and HBM for IA, will increase in demand and price. It seems that the transition to DDR5 will increase in the coming months, according to analysts.

AI would be the great lifeline for this division and other memory manufacturers. This market is moving a lot of money and it is estimated that it will increase a lot in the coming months and years. Remember that NVIDIA is one of the main providers of AI solutions in the market.

 

https://hardzone.es/noticias/componentes/samsung-problema-economico-memoria-ram/