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Manufacturers of flash memory NAND flash in 2019 will reduce the capital cost of 2% compared to last year. This opinion was expressed in the forecast, published today on the website DRAMeXchange, a division of the analytical company TrendForce.
On the world market of NAND flash memory throughout 2018 observed excess of supply over demand. This year, the situation of overproduction will worsen as the forecast demand for laptops, smartphones, servers and other end products remains weak. Not surprisingly, the manufacturers of NAND want to slow down the expansion of production possibilities — they seek to reduce the excess of supply over demand, limiting the growth of production volumes.
According to DRAMeXchange, the South Korean manufacturers have already taken measures to reduce its investment into production in 2018. Despite the fact that the total volume of capital investments in the industry of NAND flash memory declined by nearly 10%, the excess supply continues. This year's example of South Korean companies will follow us. It is expected that the total capital expenditure in the global NAND industry will reach 22 billion dollars, which is approximately 2% lower than in 2018.
Consumers are understandably more interested in the part of the forecast concerning the prices. According to estimates by DRAMeXchange, the average cost of NAND in 2019 will be reduced by almost half.
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