Memory chips to see highest growth among semiconductors: report
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According to market research firm Omdia on Thursday, the average annual growth rate of the entire semiconductor market between 2021 and 2026 is expected to reach 5.8 percent. Memory semiconductors are projected to grow 6.9 percent, which is higher than the overall average and even higher than the 5.9 percent expected for system semiconductors.
Among memory semiconductors, NAND flash is expected to show the highest growth rate, with an average annual growth rate of 9.4 percent by 2026. This is the highest figure among all semiconductor product groups.
Major semiconductor companies have already announced production cuts.
SK hynix Inc. said in its third quarter conference call last year that it decided to reduce its investment by more than 50 percent this year, while reducing production of low-margin products. The company’s original investment plan surpassed 10 trillion won ($812 million) last year.
U.S. Micron Technology Inc. also decided to reduce its memory semiconductor production by 20 percent this year and its facility investment by more than 30 percent.
Samsung Electronics Co. maintains its position that there will be no production cut, but the industry expects the memory chip giant to make cut output indirectly by relocating production lines or delaying new facility expansion.
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