Although in the second half of last year, the global chips were significantly reduced, especially memory chips, and even the price was reduced by as much as 60%, but during the 618 period, the memory chips have rebounded. According to a report released by Trendforce, the number of memory chips has accumulated by 20% to 30%, and some categories have even increased even more. It is expected that by the first quarter of 2024, the **18% to 23% of memory chips will continue**. This change is not unexpected, as the number of storage products on the market has risen significantly in recent times.
Western Digital has said that in the next few quarters, 55% of storage products will be. Moreover, giants such as Samsung, SK hynix, and Micron have also issued price increase letters to downstream manufacturers, informing them that they are about to increase prices, and it is expected that the first quarter of 2024 will usher in a wave of fierce **. It can be said that the cold winter of memory chips has basically ended, and the harvest cycle of giants has begun again. Manufacturers who have been hit hard during the trough period will be able to make up for their previous losses in the ** period.
It is worth noting that although the rise of domestic memory chips has exerted certain competitive pressure on foreign giants, the current share of domestic memory chips in the market is still less than 5%, and its impact on the market is still limited. Therefore, domestic memory chips still need to continue to work hard to make greater breakthroughs in market share, and only when the market share reaches a certain level can it really have an impact on the market and become a rule-maker.
To sum up, the memory chip industry is a cyclical cycle. When the time comes, manufacturers will adopt the strategy of cutting prices and reducing production to clear inventory, and then compete with each other to see who has more funds and can withstand pressure to gain a larger market share. And when the industry recovers, manufacturers will raise prices and expand production capacity to ship quickly and make more profits in preparation for the next downward cycle. In this industry, those companies that are better able to survive the trough and fend off the competition will eventually be the winners.
Combined with personal experience and observation, the fluctuation of memory chips is not only determined by internal technological progress and market demand, but also affected by various external factors, such as changes in the international situation, policy adjustments, etc. Changes in these factors will have an impact on the competitive landscape of the industry, which in turn will affect the supply and demand relationship and trend of memory chips. Therefore, as practitioners and investors in the memory chip industry, you need to maintain sensitivity and insight into the overall industry dynamics to better grasp market opportunities and make informed decisions.