It will take a while until the manufacturing reduction makes itself felt in the overall IC pricing landscape. It seems we're now in the descending part of the spectrum, with prices - especially of NAND - being expected to drop in the coming months. The scales of production typically occur in cycles - ones with excess manufacturing against demand, and other times where the reverse happens. Samsung and Kioxia both have announced a reduction in production output in the months to come, which should give distribution enough time to clear some of the accumulated inventory. This has now led to a 1.7% decline in August's output when compared to the same period last year - the first time the South Korean industry has seen negative growth since 2018. But all that goes up must eventually come down, and now South Korean manufacturers are facing the result of months of decreased consumption, with stock levels increasing ahead of actual product uptake (stocks have reached 67.3% of produced goods and factory shipments have declined 20.4%). The economic downturn keeps pushing the PC and related manufacturing markets down, following slumps in demand stemming from increased cost of living, the veritable arms race to technological products during COVID-19, and manufacturer's efforts to increase output to provide enough product to meet said demand.
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