Buzz
The company attributes this significant decline to a decrease in demand for memory chips. Although Samsung hasn't disclosed the exact extent of their memory module production cuts, industry analysts predict a reduction of about 25%.
Semiconductor analyst Minbok Wi from Daishin Securities estimates that Samsung could decrease memory chip production by 20% to 25% in the first half of 2023 compared to the same period in 2022. On the other hand, KB Securities forecasts that the South Korean company will reduce memory chip production by 15% and DRAM production by over 20%, starting from Q3 2023.
Samsung has stated that they have sufficient memory chip reserves to meet medium to long-term demand and are planning to reduce production of older products. While the company hasn't specified which memory chip types will be affected, The Korea Herald reports that Samsung will focus on reducing production of low-cost DRAM modules such as DDR3 and DDR4 due to declining demand. Instead, the company will concentrate efforts on advanced memory chips like DDR5, which are becoming increasingly popular.
Despite the current outlook for Samsung and the chip industry appearing bleak, some analysts remain optimistic, suggesting that a change may occur in 2024.
