Industry News

Samsung operating profit plunges 96%, announces memory chip production cuts!

Update time : 2023-04-11 11:17:39

Samsung, which reported its lowest profit since 2009, said Friday it is cutting production of memory chips, according to comprehensive media reports. Samsung said operating profit for the three months to the end of March could reach 600 billion won ($455 million), compared with 14.1 trillion won last year. The company expects revenue to fall 19 percent to 63 trillion won in the same period.

The forecast is lower than data from FnGuide, a research firm that collected data from 22 stockbrokers and predicted Samsung's quarterly operating profit of 1 trillion won on revenue of 64.2 trillion won.
Although Samsung acknowledged that its memory business is deteriorating, it did not release figures by division. Analysts estimate that its semiconductor business could post an operating loss of more than 4 trillion won for the quarter. Samsung is the world's largest memory chip maker, accounting for about 40 percent of the DRAM and one-third of the NAND flash market.
Samsung said the company is reducing its production of memory chips. A Samsung statement said, "Based on an assessment that the company has secured sufficient quantities to respond to future changes in memory demand, Samsung is adjusting to reduce memory production to meaningful levels and optimizing production line operations already underway.
This is a significant step forward for the industry after an oversupply caused prices to plummet, and investors have expressed support for the decision, with the company's shares up nearly 4 percent in early trading. "Samsung's production cut is a meaningful move," said Lee Seung-Woo, an analyst at Eugene Investment & Securities. "Samsung's production cut could affect memory spot prices soon. There is almost no demand right now."
Samsung also said it will continue to invest in infrastructure and expand R&D spending to strengthen its market leadership. "We have cut our short-term production plans, but as we expect strong demand in the medium to long term, we will continue to invest in infrastructure to ensure the necessary clean rooms and expand R&D investments to strengthen our technology leadership."

Previous : The Japanese government plans to provide Rapidus with an additional 300 billion yen to build a 2nm chip factory

Next : Intel confirms 14th-gen Core processors based on Meteor Lake architecture, not Raptor Lake Refresh

How many chips does a car need?

Sep .19.2024

Automotive chips can be divided into four types according to their functions: control (MCU and AI chips), power, sensors, and others (such as memory). The market is monopolized by international giants. The automotive chips people often talk about refer to

Position and Function of Main Automotive Sensors

Sep .18.2024

The function of the air flow sensor is to convert the amount of air inhaled into the engine into an electrical signal and provide it to the electronic control unit (ECU). It is the main basis for determining the basic fuel injection volume. Vane type: The

Chip: The increasingly intelligent electronic brain

Sep .14.2024

In this era of rapid technological development, we often marvel at how mobile phones can run various application software smoothly, how online classes can be free of lag and achieve zero latency, and how the functions of electronic devices are becoming mo

LDA100 Optocoupler: Outstanding Performance, Wide Applications

Sep .13.2024

In terms of characteristics, LDA100 is outstanding. It offers AC and DC input versions for optional selection, enabling it to work stably in different power supply environments. The small 6-pin DIP package not only saves space but also facilitates install

About Us

About Us What we do Quality People

Products

CHIP/IC Active devices Passive device Components OTHER

China electronic components supplier----Wah Luen Shing Electronic.----www.wlschip.com

Leave a message