Micron, a large memory manufacturer in the United States, recently had a severe financial forecast and warned that the market demand was shrinking, which made the trend of Samsung Electronics, another giant, highly visible. According to the analysis of Korean media, Samsung is unlikely to join the ranks of Micron’s chip production reduction.

According to the Korean Times, although Micron and SK Hynix began to cut costs to cope with the decline in revenue and gross profit margin, Samsung is unlikely to change its chip production strategy. By the first quarter of 2023, Samsung will basically still try to maintain its gross profit margin. It is predicted that consumer confidence will recover as soon as the second quarter of 2023.
The report quoted senior executives of a Samsung front-line supplier as saying that Samsung is trying to reduce its chip inventory. Although the reduction in production is bound to be beneficial to short-term supply and demand, Samsung does not consider significantly reducing its memory chip output, because the company is still discussing with important customers such as automobile manufacturers how to restore its inventory to health.
The celebrity said that Samsung focused on the technology import and installation of the American wafer foundry. Samsung is more likely to adjust the capacity of memory chips, so as to affect the timing of equipment investment, specifically the progress of chip processing inventory.

At present, chip manufacturers are experiencing the dilemma of inventory adjustment and sharply shortened delivery time. According to the data of the research company, as of the second quarter of this year, Samsung had a 43.5% market share in DRAM chips, followed by SK Hynix’s 27.4% and Micron’s 24.5%. It plans to release its fourth quarter earnings forecast early next month. It is estimated that the operating profit of Samsung’s semiconductor business unit in the fourth quarter was 1.5 trillion won, down 83% year on year. Earlier, its semiconductor CEO Kyung Kye hyun told employees that Samsung had lowered its semiconductor sales guidance for the second half of this year by 32% from April’s forecast.
However, according to industry sources, despite the global economic slowdown, Samsung Electronics will expand the wafer production capacity of DRAM and wafer foundry next year, and will add at least 10 extreme ultraviolet lithography devices.