CONNECT WITH US
Tech

Tech

Elon Musk calls out memory makers over 'extortionate' chip pricing, says Micron is playing smart for long-term loyalty

Tom's Hardware logo

Published on

Add as a preferred source on Google
Elon Musk calls out memory makers over 'extortionate' chip pricing, says Micron is playing smart for long-term loyalty

Elon Musk has criticized memory makers for what he calls 'extortionate' pricing amid an unprecedented shortage of both conventional DRAM and high-bandwidth memory (HBM). Although Musk did not identify the companies he criticized, his remarks seem to be directed at Samsung Electronics and SK hynix, as he praised Micron for its more 'reasonable' approach at the same time. Interestingly, Micron also enjoys exceptionally high profitability: its latest quarterly gross margin reached 81%.

  • AI data centers are swallowing the world's memory and storage supply
  • Samsung debuts three next-generation memory technologies for AI data centers
  • The future of DRAM: From DDR5 to future ICs
  • High-bandwidth memory roadmap
  • Inside the history of DRAM price-fixing lawsuits

"Micron has been reasonable regarding future memory prices, while others have been extortionate, which is something today's customers will not forget," Musk wrote in a post on X. "Micron is making the smart move for long-term customer loyalty."

Musk did not provide specific details of said extortionate pricing or disclose terms offered by different memory suppliers (which tend to be confidential). Consequently, it is impossible to determine whether Samsung and SK hynix charge substantially more than does Micron for comparable products. Nevertheless, Musk's remarks suggest considerable frustration with the pricing policies of South Korean memory manufacturers.

Over the past several quarters, memory has transformed from an easy-to-obtain commodity to a strategic asset, and makers of 3D NAND and DRAM have certainly benefitted massively from this shift. Historically, memory makers have responded to strong demand and rising prices with aggressive capacity expansions, which eventually led to oversupply and falling prices.


Source link
Related Topics:Tech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.