According to AMD, Intel and South Korea’s Ministry of Trade, sales of processors and memory for client PCs are declining faster and significantly than expected. Memory shipments fell nearly 25% last month due to slowing demand in Europe and the US and lockdowns in China, according to media reports.
Less than a month ago, IDC announced that PC shipments will drop to 305.3 million units in 2022, down 12.8% from 348.8 million units in 2021. Revised PC shipment forecasts for 2022 are primarily sales forecasts for PC makers and companies such as AMD and Intel. However, the situation deteriorated more quickly than expected.
Earlier this year, Intel expected PC sales to fall about 10% year-over-year, and to start recovering already in the second half of 2022. 2022 is compared to the previous year. But executives from both companies told Bernstein analyst Stacey Rasgon that the market is trending worse than expected, reportedly. Barons.
CPU sales are a key indicator of the health of the PC market. Memory supplier earnings are another good indicator of what to expect from the PC market. August DRAM shipments were down 24.7% year-on-year due to lower PC demand in Europe and the US and COVID lockdowns in China.In contrast, South Korea’s DRAM sales in July were reported to have fallen 7% year-on-year. Digi Times It cites data from Bloomberg and South Korea’s Ministry of Trade.
This is bad news for South Korea, as South Korea’s technology exports account for one-third of the country’s exports. DRAM accounts for about half of Korea’s memory chip sales, with 3D NAND accounting for another half. In general, South Korea’s technology exports in August fell 4.6% year-on-year.
South Korea-based Samsung and SK Hynix control about two-thirds of the global 3D NAND and DRAM memory market, so any trouble with chip sales means that demand is declining. shows clearly. It remains to be seen if the two companies will lower the price of his 3D NAND and DRAM or reduce production to keep prices at comfortable levels.
The memory price cut could be good for the ongoing move to DDR5 memory and the cost of SSDs with PCIe 4.0 x4 and PCIe 5.0 x4 interfaces. But this isn’t particularly good in the long run, as it affects the ability of companies like Samsung, SK Hynix, and Micron to invest in future product and process technology transitions.
