Samsung is going to reduce production of its memory chips. The reasons for this are the disappointing global economy, a chip surplus and reduced demand.
The South Korean tech giant indicated in its preliminary first-quarter financial figures that it is reducing its memory chip production to a “right level”. In addition, operational work around production is being adjusted to provide sufficient volume in the future.
Samsung does, however, continue to invest in infrastructure capacity and research to maintain its market leadership in memory chips.
Economy and surplus
The move is notable because earlier this year the South Korean tech giant had indicated it did not want to cut back on production. Samsung cited deteriorating global macroeconomic conditions as the reason for scaling back memory chip production.
The chip maker also sees a surplus of memory chips on the market and a reduced demand for these types of processors.
Quarterly figures
According to the South Korean tech giant, profits for the first quarter of 2023 are disappointing. This profit would be up to 96 percent less than that in the first quarter of last year.
Quarterly profit would come in at 600 billion South Korean won (418 million euros). Analysts estimated, according to Bloomberg, quarterly revenue at 1.4 trillion won.
18 hours ago
