Musk's criticism of Samsung, SK's memory chip pricing runs counter to market logic: expert
Tesla CEO Elon Musk’s latest criticism of Samsung Electronics and SK hynix over their memory chip pricing defies market realities, as any chipmaker that undercuts prevailing prices risks selling out immediately and leaving other customers without supplies, a prominent U.S. chip analyst said. Jim Handy, founder and general director of semiconductor research firm Objective Analysis, challenged…
Tesla CEO Elon Musk recently criticized Samsung Electronics and SK hynix for their memory chip pricing, calling it "extortionate" compared to their U.S. rival Micron. However, this stance runs counter to market logic, as any chipmaker that undercuts prevailing prices risks selling out quickly and leaving other customers without supplies, according to Jim Handy, founder of semiconductor research firm Objective Analysis.
Handy challenged Musk's view that memory prices are set by individual suppliers rather than determined by market forces. "Memory makers do not set their parts' pricing — the market determines the pricing," Handy stated in an interview with The Korea Times. Musk is interested in manufacturing chips in-house through his Terafab project, and soaring memory prices are a growing concern for his plans.
Musk expressed this concern on X, stating that Micron has been reasonable regarding future memory pricing.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
