2023-10-02 07:30:00
After a strong shortage of chips during the pandemic Covid-19the semiconductor market appears to have stabilized in 2023 and now the largest manufacturers are slowing down their production, as is the case with the South Korean brand Samsung.
As the website SamMobile pointed out, Samsung is ready to continue its production cuts to reduce chip losses in the third quarter of 2023. The company began reducing its semiconductor manufacturing earlier this year.
Analyst Kim Dong-won of KB Securities predicted that Samsung’s Device Solutions (DS) division, which oversees the company’s chip business, will suffer losses of about KRW4 trillion (about US$2.96 billion). in the third trimester.
Kim also noted that Samsung has increased chip production cuts since the second half of the year to 30% for DRAM and 40% for NAND Flash, up from 20% and 30%, respectively, in the first quarter of 2023.
Samsung’s DS division reported an operating loss of KRW 4.6 trillion in the first quarter, which was its first financial loss in 14 years. The main reason for this was significant chip stocks amid lower global demand.
Trendforce noted that Samsung has taken an important step to cut 50% of NAND Flash production to deal with continued weak demand. This is likely to trigger a ripple effect, a potential price increase for its primary products, Trendforce added.
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