According to the news, the storage industry is experiencing severe challenges, chip oversupply, customers were forced to cut orders, as well as product prices plummeted. According to Bloomberg reports, the total loss of the world's major storage chip makers this year, the largest ever, will be as high as $ 5 billion.

The industry believes that manufacturers, including Samsung, SK Hynix, Micron, South Asia and other manufacturers are difficult to avoid the pressure of huge losses.

Bloomberg reported that storage vendors said less than a year ago that tighter management and products would have new markets, including 5G technology and cloud-based services, which would ensure that companies reach more predictable surpluses.

However, Tiburon Consulting senior research director Arden Wu noted that "the chip industry thought suppliers would have better control, and this downturn proves everyone wrong."

Tibco expects DRAM price declines to narrow to an estimated 13% to 18% this quarter, but it is not yet possible to see the end of the industry's boom down cycle.

According to a report in Taiwan's Economic Daily, China's largest DRAM maker Nanya Technology also believes that the global economy is still shrouded in the impact of high inflation, interest rate hikes and other variables, keeping the DRAM industry under pressure this year.

Nanya's general manager, Pei-Ying Lee, also admitted that the overall DRAM industry is facing greater pressure this year than last year, but fortunately, the two largest manufacturers have already taken action to reduce production and cut capital expenditures. NAN YATCO's capital expenditures this year will continue to be conservative and are expected to drop to NT$18.5 billion for the year, with equipment investments reduced by as much as 50%.

Micron has also reacted positively to the plunge in demand, announcing at the end of last month that in addition to production cuts, it will also scale back budgets for new plants and equipment. In addition, SK Hynix has also cut investment and scaled back production.

According to the report, in the broader environment, consumers and businesses face inflation and interest rate hikes, postponing purchases of computers, tablets and smartphones, manufacturers of these devices are big buyers of memory chips, and there is no need to make more purchases when inventory components cannot be cleared.

Industry inventories have more than tripled to an unprecedented high water level, enough to supply three to four months of demand. Samsung and its competitors are losing money on every chip produced, Bloomberg estimates that all major memory chip factory operating losses this year, fearing the largest ever, will reach $ 5 billion.

source：aijiwei