The President Of Samsung Said The Floods In Thailand Had A Negative Impact On Dram Market

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According to the reports of foreign media, the president of Samsung Electronics recently announced that the flood in Thailand was expected to have a tremendous impact on the production of personal computer (PC), and thus further affecting the computer chip market, and this adverse situation caused by this impact might be better till the first quarter of next year.

Samsung, as the world's second-largest personal computer component manufacturers, was unable to avoid the influence of floods. Since floods hit the production of Samsung’s hard disk drive (HDD) in July, they further brought a panic to the entire personal computer industry. Especially in the situation of the global economy facing slow growth as well as PC facing the threat of smart phones, tablet PCs and other products, the adverse effects of such floods on personal computers is self-evident.

Samsung is the world's top DRAM (dynamic random access memory) manufacturer and DRAM is widely used in personal computers. In this area, Samsung and Hynix, Elpida and Micron and other companies have a fierce competition.

Samsung Storage Division President ...
... Jun Dong-soo said to the media on Friday: “There is too much uncertainty of the DRAM market. PC output being hit will also have a direct impact on the demand for DRAM products. Perhaps, the adverse situation of DRAM market will result in further deterioration.” However, Jun Dong-soo's statements were disclosed until today.

For now, the entire market of DRAM is in adverse situation, having been suffering from the impacts of a drop in demand and adverse capacity. Only in the third quarter this year, the price of DRAM fell by 50 percent. Major DRAM manufacturer except Samsung had the situation of quarterly loss.

Market experts said that Samsung was providing Apple with iPhone and iPad devices such as memory chips and application processors, which may bring beneficial market environment for Samsung.

Jun Dong-soo himself also expressed confidence in the competitiveness of Samsung's chip, he said: “We will not be too concerned about the disadvantages of the justice. And we will make Apple have no choice but to use our components."

Samsung’s chief operating officer Lee Jae-yong said to the media this month, he had discussed the component supply with Apple’s CEO Tim Cook, and the supply agreement between the parties would continue into 2014.

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