China’s power cuts, Samsung/SK Hynix’s memory chips suffer?

As we all know, in the field of memory chips, Samsung and SK Hynix are the real “monopoly”.

In the field of DRAM, Samsung + SK Hynix accounts for about 70% of the global share. In the NAND field, Samsung + SK Hynix accounted for about 45% of the share.

In recent years, as the price of chips has risen, Samsung and SK Hynix have made a lot of money. In particular, the chips that started last year were out of stock, and Samsung and SK Hynix made a lot of money.

China’s power cuts, Samsung/SK Hynix’s memory chips suffer?

Speaking with data, Samsung’s revenue in the third quarter was 73 trillion won (about 390 billion yuan), the highest value in history, and its operating profit was 15.8 trillion won (about 85 billion yuan), the highest in history. The second highest value.

SK hynix’s revenue in the third quarter was 11.7625 trillion won (about 63.7 billion yuan), a record high; operating profit was 4.0838 trillion won (about 22.1 billion yuan), an increase of 214.21% , is also an all-time high.

However, recently, Samsung and SK Hynix have also been in trouble. The reason is China’s power cut. So what does China’s power cut have to do with Samsung and SK Hynix?

The reason is very simple. Many materials and components used by Samsung and SK Hynix to produce memory chips are imported from China. Power outages affect these raw materials in two ways.

On the one hand, the price of raw materials has risen. Due to power cuts, the relationship between supply and demand in the market has been destroyed. China’s producer price index has experienced the largest increase since 1996, resulting in rising costs for Samsung and SK Hynix.

On the other hand, power curtailment is not only reflected in the rise in material prices, but also in the untimely supply of materials. At present, some suppliers have suspended the production of some raw materials, resulting in Samsung and SK Hynix unable to purchase sufficient quantities. s material.

South Korea is originally a country with limited resources, and a large number of raw materials and energy required by the manufacturing industry are almost dependent on imports, while China is the main importer of these raw materials in South Korea.

Therefore, this time the power cut in China has put Samsung and SK Hynix in trouble. The agency predicts that in the fourth quarter, Samsung and SK Hynix may have lower profits due to this.

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