A sense of tension is growing among those in the semiconductor industry as the prices of DRAM chips have continued to decline. In addition, the demand for personal computers, smartphones, and tablet computers, all of which consume DRAMs, is also on a declining path.
Some forecasts said that the demand for memory chips (mostly DRAMs) would take a negative turn this year, first since 2013.
Samsung Electronics and SK Hynix--the world’s No. 1 and No. 2 player in the global memory chip market--reported their results for the fourth quarter of last year which left much to be desired. Compared to a year ago, their operating profits increased but compared to a quarter ago, they suffered a negative growth.
Samsung’s semiconductor business posted an operating profit of 2.8 trillion won in the fourth quarter of last year, down 23.5 percent from a quarter ago. SK Hynix recorded sales of 4.41 trillion won and operating profit of 988.9 billion won in the fourth quarter of last year. Compared to a year ago, sales and operating profit each fell 14 percent and 41 percent.
Key factors behind their disappointing results include the sluggish demand for memory chips, which led to a decline in selling prices. The average selling price for DRAMs and NAND flash memories fell 10 percent and 15 percent, respectively.
