Under the influence of the double decline in price and demand, memory chip manufacturers are facing greater pressure, and the performance of Samsung Electronics and SK Hynix, two major memory chip manufacturers, have also been affected. SK Hynix in the third quarter, both revenue and net profit fell year-on-year, with net profit falling by more than 60%.
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Although Samsung Electronics’ overall revenue increased by 4% year-on-year to 76.78 trillion won, the revenue of the storage business fell by 27% year-on-year, and the device solutions division, where the memory chip business is located, fell by 14% year-on-year to 5.12 trillion won. The net profit was less than the 10.07 trillion won in the same period last year and 9.98 trillion in the previous quarter.
Although the memory chip business is currently not optimistic and faces many challenges, judging from the information disclosed by Samsung Electronics executives on the earnings analyst conference call, they do not plan to cut investment and gradually reduce production like SK Hynix.
According to foreign media reports, in the third-quarter earnings analyst conference call, Han Jin-man, vice president of Samsung Electronics responsible for the memory chip business, said that due to the large inventory adjustment of enterprise customers, demand is expected to weaken next year, but data center demand will weaken.
Han Jin-man also said at the meeting that some external agencies expect that market conditions will improve in the second half of the year, led by DRAM, but they do not consider artificial production cuts because they need to prepare for demand recovery from a mid-to-long-term perspective.
