Samsung is required to control memory price increases and give priority to Chinese companies

Date: 2018-02-26

South Korean media reported recently that the national development and reform commission (NDRC) has asked south Korean memory maker samsung to control the price of memory and to give priority to Chinese manufacturers. At the end of 2017, China officially intervened in the market after the Chinese smartphone manufacturer jointly reported dissatisfaction with the continuous rise in memory prices.

According to the supply chain, China's national development and reform commission (NDRC) recently asked samsung electronics to control the price of memory and give priority to the supply of memory to Chinese companies. In December 2017, Chinese smartphone makers reported samsung electronics to the national development and reform commission for their persistent rise in memory prices and poor supply. At that time, China's national development and reform commission summoned, head of samsung electronics market in China to understand, and to investigate the samsung electronics, SK hynix, such as the United States micron memory manufacturer whether there is a joint monopoly and bid up the price.

In recent years, the supply of memory has been tight due to the high speed efficiency operation and the large increase in the memory volume of mobile phone, and the price has been rising continuously for six consecutive seasons, and it is still high. Tight supply and demand for the memory industry super cycle, pull up samsung electronics and SK hynix and other memory manufacturers product prices and profits. Currently, samsung is the world's largest maker of memory chips. Its DRAM product market accounts for about 48 percent, and the NAND Flash product market accounts for about 35.4 percent.

Indeed, memory prices have soared since the second half of 2016. Among them, the mainstream smart phone is widely used to increase the price of memory, and the price is increased by 100 to 200 yuan. As for the price of the new flagship model, it is more than 300 yuan above the previous price, and the market demand is not satisfied. As a result, China's smart phone manufacturers have complained to the national development and reform commission.

It is understood that the NDRC has talked about samsung several times, and has talked about samsung for the continuous price increase of memory. Now, it is not clear what the NDRC will do to samsung. However, once samsung does participate in price manipulation, the NDRC is likely to follow other countries' penalties in this regard to implement specific measures. Related to this, south Korean semiconductor industry, he says, because of considering the memory size and the demand of the market, China and have factories in China investment, future South Korea's samsung electronics is hard to ignore China's request.

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