Samsung plans to reduce chip losses through production cutbacks

Samsung is constantly aiming to reduce chip losses in Q3 2023 and to do so, the company might continue the production cutbacks. The tech giant began this activity early this year by joining its fellows like SK Hynix and Micron Technology Incorporation.

Meanwhile, Samsung observer Kim Dong-won at KB Securities predicted that the company’s Device Solutions (DS) made losses of around 4 trillion won (US$2.96 billion) in the third quarter. Notably, it is lower than the 4.35 trillion won of the second quarter.

Kim further quoted that the manufacturer has increased the production cut since the second half to 30% for DRAM and 40% for NAND Flash. In the first half of this year, it was around 20 and 30 percent respectively.

Samsung DS division has faced an operating loss of 4.6 trillion won in the first quarter which is its first financial loss in 14 years. A major reason behind this downfall was sufficient chip inventories even when the global demand was lower. Besides, a new chip production line in Pyeongtaek Campus has also made a great impact on this matter.

Eventually, Samsung has taken a vital step by continuing the production cutbacks to narrow chip losses. Trendforce depicts that this is likely to set off a ripple effect, a potential price uplift for their primary products.

Follow our socials → Google News, Telegram, WhatsApp

|| Source ||