Compare with other electronic components, memory chip is a special thing, the main players in it are Samsung, Micron, Toshiba & Hynix, the other manufacturers are slightly taking few market shares, the pricing power are holds tightly on the hand of the these giants.
The memory chip's price has been rising in the past 2 years, especially the DRAM line, the upgrade took 8 years from DDR3 to DDR4 and the market was saturated. When the DDR4 came up and the demand exploded, the whole market was unprepared and the demand gap expanded, further more, Samsung at that time actually focus on NAND because it has better profit, this leaded to a bigger demand gap and the price increased.
Accordingly, we believe that the price will keep goes up, but Samsung suddenly decides to decrease the 3D Flash by 5% in Q1 2018. After investigate, we can easily find the reasons:
1. Mobile demand decreased.
2. A talk happened to NDRC and Samsung.
3. The growth of Chinese manufacturer, typically the Unigroup, who showed their 3D Nand product to media last month.
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