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Reports claim increased competition will result in DRAM oversupply next year

Since early 2017, we’ve been hearing about DRAM shortages and strains when it comes to supply and demand. In fact, the situation has been so seemingly odd that China’s economic regulator launched an investigation into market collusion. It looks like there might be light at the end of the tunnel though, with the latest reports claiming that the market will do a 180 in 2019 with a DRAM oversupply.

According to a report from DigiTimes, Micron Technology has recently ramped up its capacity, and commercial DRAM production from two new China-based companies is expected to kick off soon. According to ‘industry sources’, this may end up leading to an oversupply in the DRAM market next year.

We know that SK Hynix and Samsung have both announced plans to ramp up capacity to produce more memory chips, but with rival companies coming in to play, there could be some hesitation on that front.

Currently, the global DRAM market is expected to peak at $104 billion in 2018, before settling down by 1.8 percent and 2.6 percent in 2019 and 2020 respectively.

KitGuru Says: Micron, SK Hynix and Samsung have had the lion’s share of the DRAM market over the last few years. If more companies enter the scene, then there will be more competition around to drive down prices, and more supply to go around. With all of that said, we won’t know for sure how the market will be impacted until next year. 

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