Semiconductor industry faces stockpile surge

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As worldwide demand falls, the semiconductor sector is dealing with an overabundance of inventory. This provides consumers with an opportunity to update their RAM or solid-state drives (SSDs) at a lesser cost.

South Korea, renowned as a key memory supplier center for Samsung and SK hynix, had an extraordinary 83 percent increase in semiconductor inventories in April compared to the previous year. This spike is the greatest seen in seven years. As a result, manufacturing shipments and output fell, worsening the excess situation. Given that South Korea is home to two of the world’s top three memory providers, the state of the country’s semiconductor sector is an important predictor of worldwide demand for electronic devices.

In reaction to the excess, Samsung, Micron, and SK hynix have reduced output. Prices for dynamic random-access memory (DRAM) and NAND flash storage are likely to fall further as a result of this shift. As a result, purchasers should take advantage of the current market condition by taking advantage of lowering prices. However, it is vital to recognize that demand will ultimately increase, causing prices to rise.

Gartner anticipates a strong recovery in the memory industry, with increased chip demand fuelling the growth of artificial intelligence (AI) applications. It predicts a stunning 70% increase in revenue for memory firms by 2024. This optimistic view may come sooner than predicted, due to increasing interest in AI applications fueled by the introduction of more powerful models like as OpenAI’s ChatGPT. Buyers should keep an eye on the market, plan for potential price increases, and take advantage of current opportunities.

The sources for this piece include an article in TheRegister.


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