Two of the world's top DRAM and semiconductor businesses have come together to create an outlook for the future of the industry. They are trying to ell their semiconductor products across the country as well as globally. Samsung Electronics and Hynix Co., the world's 1st and 2nd memory chip companies, collaborated to create a confident outlook of semiconductors for next year as well as for the future. Both of these companies were ranked in the top of the semiconductor industry even amongst global competition.
When asked by a reporter about next year's DRAM market outlook, Kim Jong Kap, president of Hynix Semiconductors stated, "If you look at the whole situation, I believe that our current DRAM supply is insufficient." He also stated, "In the first quarter of next year, there might be a seasonal slump, but that may quickly change. If you look at the big picture, it is possible that our supplies might not meet the demands of our customers next year."
Presidents from both of these companies might have contrasting opinions in certain parts of their semiconductor outlook for next year, but there are many similarities as well.
Kwon Oh-hyun, Samsung Electronics Semiconductor Department President believes that there will be more similarities in their analysis and believes it is better for both companies to collaborate together.
This past October, in a Samsung company meeting, President Kwon stated, "Next year, DRAM supplies will definitely be insufficient, and supplies for Flash may also be insufficient as well."
In the current market situation for semiconductors, there is more supply than demand, but these companies are still planning to lower the prices. On the contrary, if there is more demand than supply, these companies plan to raise their prices.
Both of these company's outlooks including President Kwon and President Kim's analysis created the semiconductor outlook known as "Insufficient Supply." They both know that if they work together, there will be no overabundant supply of DRAM products and prices will become more flexible and have an increasing tendency.
There are two main points in this outlook. Right now, DRAM products installed in computers are still surviving in the market. Secondly, reconstruction of the company's production as well as the market scheme must be endured so that they are able to increase the supply amounts. Also both companies must reanalyze the market's demand and start the recovery process. Both companies know that the current situation will be challenging, but also crucial for their company's success.
