The year 2023 will be very challenging for the sale of PC components. In fact, from Q3 2022 things will go pretty bad, not just from a GPU perspective, but on a general level. Due to the poor situation at the sales level, samsung made a decision reduce chip production for DDR4 memory to improve their economic situation.

Samsung is facing a difficult time Revenue fell 18% during the first quarter of 2023. compared to the same period of the previous year. In terms of that, however, he fared much worse benefits dropped by 95%, his worst result recorded in fourteen years. In other words, the South Korean tech giant hasn’t faced such a difficult situation since the 2008 crash that led to a deep economic crisis that many doubt will overcome.

Low sales, which have been registered for several months, mean that it is becoming increasingly difficult for companies, but in return the wind is blowing in favor of consumers, who see the prices of components such as DRAM modules and SSDs not falling. If you’re lucky enough to have some cash in your pocket, it’s a good time to buy components or even refurbish your equipment. Some like NVIDIA decided, at least initially, to bet on high prices based on good brand reputation, but that move doesn’t seem to have gone down well.

Back to the topic, Samsung is planning reduce chip production for DDR4 memory modules for a period of three to six months. Samsung’s overall wafer input will decline between 5 and 7 percent, which may have, if not seems, more negative implications for a market that is no longer in its prime.

Samsung is the world’s largest manufacturer of memory chips with an estimated 45% market share. With the cuts announced, the company is expected to do so produce 25% fewer DRAM chips for a full year. On the other hand, this is not the first cut in this regard by the South Korean giant, who made a similar decision in August 2022 in terms of reducing the production of DDR3 memory modules.

Samsung’s recent policy has been to promote DDR5 memory while continuing to support DDR4. This meant that manufacturers of routers and other devices continued to turn to the slower but also cheaper DDR3 modules to cover their memory needs.

As we said before, the market is going through a very bad time in general, so in 2022 Samsung is offering discounts on DDR4 and DDR5 chips in addition to reducing and discounting DDR3 modules. More and more people are starting to think that after the pandemic bubble burst, the profile of the average consumer has changed towards a more conservative one, which is normal considering that the hardware is very powerful to handle basic tasks. long time.