“Chip equipment companies’ sales are plunging by around 30% to 50%. This is not a normal situation,” said Greg Roh, head of technology research at HMC Investment & Securities.
The rate at which the industry rights itself will depend on how quickly the company’s counterparts make similar moves, Chief Executive Officer Sanjay Mehrotra said. All eyes are now on memory-chip king Samsung, which has thus far said little about the industry’s near-term prospects. This time around, the market has been betting the company will tighten its chip supply, lifting its stock price in recent weeks.last week that it’s seeing an unprecedented reduction in orders as memory customers cut and postpone spending.
It’s always been difficult for memory makers to handle spikes and troughs in demand. Bringing new factories online takes years and billions of dollars, so it’s hard to get the timing right.They’re more focused on profitability than trying to grow quickly and gain market share.
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