China tells Samsung to put a lid on DRAM price, says analyst

February 01, 2018 // By Peter Clarke
China tells Samsung to put a lid on DRAM price, says analyst
Samsung Electronics, with the encouragement of the South Korean government, is responding to concerns expressed by China's National Development and Reform Commission (NDRC) over the price of mobile DRAM.

The price of mobile DRAM has increased over the past six quarters resulting hurting Chinese' manufacturers of smartphones. China is not a volume maker of DRAM and the NRDC raised its concerns to Samsung at the end of 2017, according to DRAMexchange, a part of Taiwan-based analysis firm TrendForce.

Samsung is expected to moderate price increases for mobile DRAM in 1Q18 and is signing a memorandum of understanding with NDRC that will also cover increased investment in China and business and technical collaboration, the research analyst said.

Avril Wu, research director at DRAMexchange said that the MoU could have a broader effect than just mobile DRAMs. DRAM producers may be expected to expand production away from mobile DRAM to other sectors. Increased production in other sectors could help moderate prices there also.

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