Market falls short of expectations, leading storage chip manufacturers significantly reduce capital expenditures

Market falls short of expectations, leading storage chip manufacturers significantly reduce capital expenditures

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1 min read

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According to 21ic news reports, due to the continued weakness of the consumer electronics market, the storage chip market has been in a state of oversupply and continuous price decline since 2022. Last year, the NAND Flash market comprehensive price index fell by 41%, and the DRAM market comprehensive price index fell by 35%. As a result, storage chip manufacturers have significantly reduced production and reduced capital expenditures.
According to the latest Global Semiconductor Equipment Market Report released by the International Semiconductor Industry Association (SEMI), the global sales of semiconductor manufacturing equipment reached $107.6 billion last year, a record high of 5% year-on-year growth. However, this year’s semiconductor equipment market is not optimistic. Due to reduced chip demand and high inventory, it is expected that the semiconductor equipment market will decline by 22% year-on-year in 2023.