DRAM Industry Might Face Upheaval

Discussion in 'HardForum Tech News' started by Megalith, Aug 7, 2016.

  1. Megalith

    Megalith 24-bit/48kHz Staff Member

    Messages:
    13,004
    Joined:
    Aug 20, 2006
    Micron is in trouble and is fending off hostile takeovers from Chinese firms due to their losses and declining stock prices. Micron is one of the big three DRAM manufacturers but is falling behind due to processing technology that is leading to higher production costs and lower profitability.

    Samsung Electronics, which has the most advanced technology in fine process, is mass producing 18-nanometer (nm) DRAM chips. SK Hynix is mass producing DRAM products using its 21nm technology, whereas Micron has 20nm technology. The smaller the line width, the more dense circuits are, which leads to more production. The more advanced technology will lower production costs and improve profitability. The semiconductor industry sources say, “As the price of DRAM products has continuously dropped, the soundness of each firm has been shown.” It means that Micron doesn’t have the competitiveness to make profits with the current DRAM prices.
     
  2. HeavensCloud

    HeavensCloud Oswego, not shitty as Buffalo

    Messages:
    7,466
    Joined:
    Feb 7, 2008
    I know nothing about the politics of manufacturing DRAM, but I'm amazed a company like that could be in trouble considering how many of our luxuries use it. Even mid-top tier appliances are becoming smart now.
     
  3. sleepeeg3

    sleepeeg3 [H]ardness Supreme

    Messages:
    4,812
    Joined:
    Mar 4, 2004
    Competition. ...and Samsung has deep pockets from diversification.

    Market caps:
    Samsung: $160B
    Micron: $16B
    Hynix: $13B
     
  4. cyclone3d

    cyclone3d [H]ardForum Junkie

    Messages:
    12,932
    Joined:
    Aug 16, 2004
    Samsung is a South Korean company, not Chinese.
     
  5. gxp500

    gxp500 Gawd

    Messages:
    867
    Joined:
    Mar 4, 2015
    So micron turned in a loss because they have 20nm technology, while hynix has 21nm technology and made an almost 1billion profit? Uh ok there.
     
  6. -Strelok-

    -Strelok- [H]ardForum Junkie

    Messages:
    9,997
    Joined:
    Dec 2, 2010
    Read the article next time. Samsung isn't the one trying to buy Micron.
     
  7. drakken

    drakken [H]ard|Gawd

    Messages:
    1,196
    Joined:
    Aug 19, 2004
    A worker in South Korea lives on two thousand usd a month and is considered wealthy. A US worker lives on about four thousand usd a month and some months has bills that don't get paid. A Chinese worker lives on about two thousand usd a year and is considered wealthy. Micron has the highest mkg cost and worker costs of the three but not the highest value for the money product. To make more money than Samsung they need ram that costs about two thousand dollars a package but the economy will not support that right now, so they would have to sell ram models at about seven hundred dollars a shot to most gamers or about ten times the sales they get now. They basically need to sell ram modules that have as much performance increase in a system as a high end video card or cpu compared to the value offerings. Right now Samsung targets about two hundred to three hundred usd final products. Since their offering are generally faster Micron has to sell at that price point. The chips on thirty gigabytes of ram is about one hundred eighty dollars for Samsung's costs. Micron's costs are slightly higher. The Chinese want the technical designs and process so they don't have to wait for someone to go through school in a first world nation, then try and explain the western concepts to a Chinese audience. What they want is the design experience, which is Micron is smart is what they are trying to avoid laying off, if they are laying off designers, Micron will likely fail, in the next five years. TSMC got it's start because Intel and AMD laid off designers who were willing to move to tawain. Micron does not have the cash resevers to fight off the sleazy investors in this country, if they do not have something in the works to go from where they are to a more feasible path to stability. Considering they are the only producer of ram in this country, and the reason that TSMC in china does not make ram... Micron should buy up all the shares restructure as a company, then go through what applicable skills everyone in the company has and apply for a grant from the us government to protect those people's salaries. which will keep the ram cheap for the foreseeable future. Then again just as china is trying to buy out a ram design and mkg company we are looking at IDPT8 systems for high end memory hopefully across the board.
     
  8. cyclone3d

    cyclone3d [H]ardForum Junkie

    Messages:
    12,932
    Joined:
    Aug 16, 2004
    I did. The snippet from the article makes it sound like Samsung is Chinese as it is the very first one mentioned.
     
  9. sleepeeg3

    sleepeeg3 [H]ardness Supreme

    Messages:
    4,812
    Joined:
    Mar 4, 2004
    Location probably plays a role, but may not be the whole picture. The US's minimum wage and taxes, which drive up the cost of labor and products manufactured here, definitely makes Micron less competitive. However, it looks like their newer DRAM manufacturing plants are overseas. Unfortunately, the one making 20nm chips is in Japan, which may pay their workers more than even the US.
     
  10. nilepez

    nilepez [H]ardForum Junkie

    Messages:
    11,305
    Joined:
    Jan 21, 2005
    If only Micron had stayed in the PC business, they'd be diversified and able to fight off these invaders ;)
     
    defaultluser likes this.
  11. thesmokingman

    thesmokingman [H]ardness Supreme

    Messages:
    4,772
    Joined:
    Nov 22, 2008
    China really wants parity to the rest of the IT world.