Memory chip stocks plunge amid China and oversupply concerns

Summarised from 2 outlets · Updated 15 Oct, 17:58 · Archive

Memory chip stocks have fallen sharply this week as investors worry about Chinese competition and potential market oversupply.

Memory chip stocks have fallen sharply this week. SK Hynix has dropped 26%, Samsung 22% and Micron around 11% over five days, making them some of the hardest-hit names in the latest tech sell-off.

The decline was triggered by Chinese chipmaker ChangXin Memory Technologies announcing plans to roll out a server memory product based on new architecture. The design would allow higher storage density, raising concerns that the breakthrough could enable the Chinese company to take global market share from rivals Samsung, SK Hynix and Micron.

However, analysts have questioned whether CXMT can execute the plan. Ben Barringer, global head of technology research at Quilter Cheviot, noted that architectural changes present manufacturing challenges: 'the issue is with any architectural change ... you can make the chips, but what yield are you getting?' Kevin Cassidy, a senior research analyst at Rosenblatt Securities, said CXMT's developments are unlikely to affect the supply-demand equation significantly. Traders are also discussing broader concerns about when the market could become oversupplied.

How it is being reported

• Smartphone shipments plummet as memory crisis pumps up pricesAI's appetite for components hammers budget handsets, with analysts seeing little relief before 2028The Register · 15 Oct, 17:45
• Memory stocks are getting hammered. China and a 2029 oversupply are the big worriesSK Hynix, Samsung and Micron have been some of the hardest-hit names in the latest tech sell-off.CNBC · 15 Oct, 13:15

In this story: SK Hynix · Samsung · Micron · ChangXin Memory Technologies · China

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