Top Three Memory IC Vendors Are Generating Record Profits in 3Q18

cageymaru

cageymaru

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Digitimes Research has compared the revenue from last year to 2018 from the top 3 memory chipmakers; Samsung Electronics, SK Hynix and Micron Technology. They have concluded that the combined revenue from those corporations in the 3Q18 saw increases of 8% sequentially and 36% on year. This is most likely due to demand for servers and smartphones.

DRAM chip sales accounted for as high as 71% of the combined memory chip revenues generated by the top-3 vendors in the third quarter of 2018, Digitimes Research indicated. The top-3 memory chip vendors saw their combined DRAM memory sales reach US$26.4 billion in the third quarter, up 10% sequentially.
 
It could also be they have the prices high and know dam well you can't build a system without memory. Or anything with memory.
 
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The manufacturers are certainly controlling market prices to some degree, but I would also point out that they are in the 'gravy' stage for DDR4. DDR4 manufacturing has matured, waste is down, speeds are up, and all the companies have finished converting their foundries. But even though they've had three years of production, total shipments of DDR4 memory have barely reached 20% of the total memory market.

This phase in the memory market cycle is always the spot where chip makers achieve their best profit, which makes it harder to prove that there is price fixing.
 
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DDR5 or whatever is the next memory standard needs to open so that China could make memory and keep those memory prices low.
 
Night_Hawk-19 said:
Gee gouging consumers made profits. Seems to be cycle all the memory manufacturers get slap on the wrist. Why make fines higher for each time they repeat offense.
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For any fines to be meaningful now, any company should lose their gross profits from a few quarters and executives need to serve a few years in jail. It's the only way things will ever change.
 
DukenukemX said:
DDR5 or whatever is the next memory standard needs to open so that China could make memory and keep those memory prices low.
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DDR1, DDR2, DDR3, DDR4, and DDR5 are all open. What isn't open and will never be open are the processes and actual designs (as it should be). China can already make all those DRAMs, they just can't make them competitively or without stealing IP. The reality is that the JEDEC specs have always been open and are pretty much interface and timing specifications. It is up to the individual vendors to design parts that conform to the JEDEC specs.
 
Night_Hawk-19 said:
Gee gouging consumers made profits. Seems to be cycle all the memory manufacturers get slap on the wrist. Why make fines higher for each time they repeat offense.
Click to expand...

This cycle isn't really gouging but market demand. The demand for memory products atm is at all time highs and there hasn't been a significant capacity increase in a while because all the vendors are fearful of a demand downturn and $5-10 billion investments are pretty risky investments.
 
aaronspink said:
This cycle isn't really gouging but market demand. The demand for memory products atm is at all time highs and there hasn't been a significant capacity increase in a while because all the vendors are fearful of a demand downturn and $5-10 billion investments are pretty risky investments.
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They are having lawsuit right now on price gauging.....It's pretty obvious...

Samsung and Hynix used monopoly and price fixing to drive out Taiwanese competition years back so they can pull these kind of shit.
 
aaronspink said:
This cycle isn't really gouging but market demand. The demand for memory products atm is at all time highs and there hasn't been a significant capacity increase in a while because all the vendors are fearful of a demand downturn and $5-10 billion investments are pretty risky investments.
Click to expand...

This would make complete sense to a naive 12 year old. Are you really going the explain to us how the market works? pfff, the nerve on this one. If only we could understand simple economics and open our pockets minds to what you (and they, if there's a difference) have to say.

What would it take for you to acknowledge the objective truth?
 
shansoft said:
They are having lawsuit right now on price gauging.....It's pretty obvious...

Samsung and Hynix used monopoly and price fixing to drive out Taiwanese competition years back so they can pull these kind of shit.
Click to expand...

dgz said:
This would make complete sense to a naive 12 year old. Are you really going the explain to us how the market works? pfff, the nerve on this one. If only we could understand simple economics and open our pockets minds to what you (and they, if there's a difference) have to say.

What would it take for you to acknowledge the objective truth?
Click to expand...


Memory is tracking demand and 90% of the capacity is basically spoken for. If someone wants to start up and provide competitive memory they are welcome to, but all three majors are running at capacity and both the spot and contract prices are in a downturn as they are pumping more and more dram (largely due to process transitions and maturation) and demand is slowing. This is basically part of the normal pricing cycle. There's nothing to really suggest price fixing besides China's self serving legal action.
 
i think most people still remember buying memory built on older (more costly per GB) processes for half the current price per GB...
and big manufacturers insisting that those prices are sustainable and they are not trying to force smaller manufacturers from the market...
honestly....
 
aaronspink said:
Memory is tracking demand and 90% of the capacity is basically spoken for. If someone wants to start up and provide competitive memory they are welcome to, but all three majors are running at capacity and both the spot and contract prices are in a downturn as they are pumping more and more dram (largely due to process transitions and maturation) and demand is slowing. This is basically part of the normal pricing cycle. There's nothing to really suggest price fixing besides China's self serving legal action.
Click to expand...

So how did the cost of manufacturing memory go up 200 percent from 2016? They were selling the same thing at a third of the price. Yeah, now after they got the slap on the wrist it is "only" twice the price.
 
Top Three Memory IC Vendors Are Generating Record Profit losses in 4Q18

Memory prices are dropping through the floor, about time.
 
aaronspink said:
DDR1, DDR2, DDR3, DDR4, and DDR5 are all open. What isn't open and will never be open are the processes and actual designs (as it should be). China can already make all those DRAMs, they just can't make them competitively or without stealing IP. The reality is that the JEDEC specs have always been open and are pretty much interface and timing specifications. It is up to the individual vendors to design parts that conform to the JEDEC specs.
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Still hoping China catches up or prices drop before my next upgrade...
 
Just being a bit picky here. But the headline is wrong. Revenue is not profit. It could well be that they made record profits this year, but the article doesn't mention anything about that. Revenue is income before pesky things like taxes, payroll and other costs are met.
 
The only reason I plan to buy any DDR4 is for a new gaming rig with Ryzen. Otherwise my servers will be DDR3 because I don't need more than that.
 
M76 said:
So how did the cost of manufacturing memory go up 200 percent from 2016? They were selling the same thing at a third of the price. Yeah, now after they got the slap on the wrist it is "only" twice the price.
Click to expand...

It didn't, demand went through the roof. During the whole price rise, the spot market was well above the contract market.
 
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