Fast technology April 12 news, for now South Korean manufacturers, SSD and other memory chips encountered new problems, even if the price falls, but still not easy to sell.
South Korean exports fell 8.6 per cent in the first 10 days of April from a year earlier to $14 billion, as global demand for chips remained sluggish, according to data released by South Korea's customs agency on Tuesday.
Chip exports continued to fall sharply, falling 39.8 per cent to $1.77 billion in the first 10 days of April. Exports of oil and steel products fell 19.9 per cent and 15.1 per cent to $1.1 billion and $1 billion, respectively.
In terms of export destinations, exports to the United States rose 32.1 percent to $30 billion, exports to China fell 31.9 percent to $2.66 billion, and exports to the European Union increased 14.5 percent to $1.57 billion.
In fact, this problem is already obvious. For example, memory chips such as SSD, as one of the main revenues of Samsung and SK Hynix, although the price has dropped a lot, the sales volume is still not very large, mainly because the domestic price is very competitive. For example, the same 1TB version, domestic can be at least 10% cheaper.
Last week, Samsung Electronics announced that it would cut production of memory chips after it reported its lowest profit since the global financial crisis in 2009.
This is an important step for the industry after prices plummeted as a result of oversupply. Samsung's operating profit plunged 95 per cent to 600 billion won ($450 million) in the three months to march, below the average analyst estimate of 1.4 trillion won. Sales dropped to 63 trillion won.
Samsung said it would cut production of memory chips to a meaningful level of ldquo;-a move that competitors have been waiting for after large inventories affected pricing and profits. In recent months, the world's largest memory chip maker has refused to cut production, in part to win market share from competitors.