According to foreign media reports, under the influence of the decline in demand for consumer electronics products, chip manufacturers in the second half of last year, shipments have also decreased, memory chip manufacturers are particularly obvious, shipments and prices have both declined.
Chip makers’ shipments decreased, which means that the demand for key components such as wafers has decreased.
The latest foreign media reports show that by Samsung Electronics and SK Hynix, two major memory chip manufacturers to reduce imports, South Korea’s imports of wafers from Japan in the fourth quarter of last year fell to $ 203 million (currently about RMB 1.382 billion), a 26.66% decline.
In the report, foreign media mentioned that the deteriorating market conditions, Samsung Electronics and SK Hynix’s inventory is rapidly increasing, the current inventory level has been more than 20 weeks, much higher than their usual 5-6 weeks.
In the case of high inventory and low market demand, Samsung Electronics and SK Hynix are also reducing wafer imports and production to control inventory.
Of course, in the context of the global decline in demand for memory chips, other major manufacturers are also reducing production. From foreign media reports, the reduction of the production of memory chip manufacturers also include Micron, Armored Man and Western Digital. Micron has decided to reduce their production to 80% of last year, and Armor Man since October last year has cut production by 30%.
In the case of major memory chip makers reducing production, their demand for wafers is also bound to reduce, the relevant wafer manufacturer’s supply will also be reduced.