Table of Contents
Introducing the Truth About South Korea’s Memory Supply and the ‘Big Three’
In a shocking revelation, the Bank of America has shattered the illusion of an imminent surge in new memory supply. Recent reports suggest that SK hynix is likely to bring online only a fraction of its planned production capacity additions by 2028.
The Reality of Samsung and SK hynix’s New Fabs
According to an insider in the Taiwanese memory chip industry, the grand plans of Samsung and SK hynix to fully operationalize their massive new fabs at Gwangju and Jeolla could take up to a decade. This contradicts the ambitious vision of South Korea’s President, Lee Jae-myung, who aims to double the country’s memory capacity by 2030.
Despite the hype surrounding the new fabs in South Korea, recent analysis from the Bank of America suggests that the projected capacity increases may not be feasible within the proposed timelines. Factors like the closure of older plants and the time-consuming process of technology upgrades could hinder the country’s goal of expanding its memory wafer capacity by less than 10 percent annually.
The Implications of These Delays
The delays in bringing the new fabs online could have far-reaching consequences, especially in light of the recent class-action lawsuit filed against Samsung, SK hynix, and Micron. The lawsuit alleges collusion and price-fixing by the ‘Big Three’ in the global DRAM market.
With SK hynix potentially adding only a fraction of its planned capacity by 2028, the prospect of resolving the legal issues through increased production seems bleak. The slow progress in expanding memory supply could further exacerbate the challenges faced by the leading memory manufacturers.
Conclusion
The road to increasing memory supply in South Korea is fraught with challenges and delays, casting doubt on the industry’s ability to meet ambitious targets. As the ‘Big Three’ grapple with legal battles and production constraints, the future of the global memory market remains uncertain. Only time will tell if the grand plans for new fabs will materialize, or if the industry will face continued setbacks.