HomeNewsSamsung's operating profit plummeted 96%, announcing a reduction in memory chip production!

Samsung's operating profit plummeted 96%, announcing a reduction in memory chip production!



Samsung reported its lowest profit since 2009 and said on Friday it was cutting production of memory chips.
 
"NAND flash memory is still oversupplied because demand for products such as servers, smartphones and laptops is still too weak," TrendForce said in a report last week.
 
"the key to the return of supply and demand to the market balance is whether NAND suppliers can further reduce production."
 
Q1 operating profit plummeted 96%.
 
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% to 63 trillion won over the same period.
 
Although Samsung admitted that its memory business was deteriorating, it did not release figures by department.
 
Analysts estimate that the operating loss of its semiconductor business this quarter could exceed 4 trillion won.
 
Samsung is the world's largest maker of memory chips, accounting for about 40 per cent of the DRAM and 1/3 of the NAND flash memory market.
 
Announced a reduction in production of memory chips.
 
Samsung says it is reducing production of memory chips.
 
Samsung said in a statement, "based on an assessment that the company has ensured sufficient quantities to cope with future changes in memory requirements,

Samsung is adjusting to reduce memory production to a meaningful level and optimize production line operations that are already under way.
 
It was an important step for the industry after a supply glut led to a collapse in prices, and investors supported the decision, with the company's shares up nearly 4 per cent in morning trading.
 
"Samsung's production cut is a meaningful move," said Lee Seung-Woo, an analyst at Eugene Investment & Securities.
 
Samsung's production cuts may soon affect the spot price of memory.
 
There is almost no demand now. "
 
Samsung has refused to cut production in the past few months, in part to grab market share from competitors.
 
Samsung also said it would continue to invest in infrastructure and expand R & D spending to consolidate its market leadership.
 
"We have cut 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 investment to consolidate our technology leadership."
 
In addition, storage manufacturer Micron said that customer inventory is declining and expects the balance between supply and demand to improve gradually.
 
The pace of recovery will depend on peer efforts to cut supply, according to media reports.