After nearly two years of growth, the memory chip market has begun to decline. The slowdown in demand caused by worries about a global economic recession has affected the demand for end products, which in turn has affected the demand for memory chips. As for the demand for memory chips, some research institutions predict that the prices of both NAND flash memory and DRAM will decline, and the oversupply of the market will intensify next year.
A number of memory chip manufacturers do not think the market can recover in the short term, and they are cutting production and reducing investment.
Foreign media said in the report that for memory chip manufacturers if the production line stops production, it will suffer huge losses when it restarts again, but in the case of high inventory, maintaining production will suffer even greater losses.
In the report, the memory chip makers mentioned by foreign media that have cut production and invested include Micron and Kioxia. Micron, the world's third-largest DRAM maker, has decided to cut its capital spending for the next fiscal year by up to 30 percent and chip equipment by up to 50 percent. Kioxia, the second-largest maker of NAND flash memory, will also cut production starting this month.
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