According to DigiTimes, Samsung announced severe cuts to its memory chip production due to decreased market demand. As a result, DDR4 prices are expected to stay low temporarily as Samsung cuts NAND and memory output to reduce inventory overhead and match market demand. However, DDR4 prices are expected to rebound once the overloaded inventory is depleted.
Samsung did not confirm whether its memory production cuts are related to DDR4; however, according to DigiTimes, most market observers believe the cuts will focus on DDR4. Either way, it will affect Samsung's memory output significantly. For perspective, this is the first production reduction announcement Samsung has made in 27 years.
