{"id":48013,"date":"2023-10-02T12:43:37","date_gmt":"2023-10-02T12:43:37","guid":{"rendered":"https:\/\/forum.sbenny.com\/blog\/technology\/smartphones\/smartphone-news\/samsung-will-further-cut-memory-chip-production-to-stem-losses\/"},"modified":"2023-10-02T12:43:37","modified_gmt":"2023-10-02T12:43:37","slug":"samsung-will-further-cut-memory-chip-production-to-stem-losses","status":"publish","type":"post","link":"https:\/\/forum.sbenny.com\/blog\/technology\/smartphones\/smartphone-news\/samsung-will-further-cut-memory-chip-production-to-stem-losses\/","title":{"rendered":"Samsung will further cut memory chip production to stem losses"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"review-body\">\n<p>Samsung Device Solutions (DS), the division responsible for its profitable chip manufacturing business, reported a loss in the first quarter of this year, its first red quarter since 2009. Unfortunately, the rest of the year doesn&#8217;t look good in any case, so Samsung is cutting production targets.<\/p>\n<p>Operating loss in the first quarter was KRW 4.6 trillion, which was narrowed to KRW 4.36 trillion in the second quarter.  The loss for the third quarter will be around KRW 4 trillion ($2.95 billion), forecasts analyst Kim Dong-won of KB Securities.<\/p><div id=\"forum-2881218891\" class=\"forum-content-2 forum-entity-placement\">\t\t<div class=\"ad-wrapper\" style=\"width:100%;min-height:250px;text-align:center\">\r\n\t\t\t<!-- In Article Blog -->\r\n\t\t\t<ins class=\"adsbygoogle\"\r\n\t\t\t\t style=\"display:block; text-align:center;\"\r\n\t\t\t\t data-ad-layout=\"in-article\"\r\n\t\t\t\t data-ad-format=\"fluid\"\r\n\t\t\t\t data-ad-client=\"ca-pub-3476569516614521\"\r\n\t\t\t\t data-ad-slot=\"9829044906\"><\/ins>\r\n\t\t\t<script>\r\n\t\t\t\t (adsbygoogle = window.adsbygoogle || []).push({});\r\n\t\t\t<\/script>\r\n\t\t<\/div><\/div>\n<p>Other analysts expect smaller losses for the third quarter: KRW 3.7 trillion, according to Kim Kwang-jin of Hanwha Investment &#038; Securities, and KRW 3.6 trillion, according to Greg Roh of Hyundai Motor Securities.<\/p>\n<p>In the first half of the year, Samsung reduced production of DRAM chips by 20% and NAND flash chips by 30%.  In the second half of the year the cuts will increase to 30% and 40% respectively, explains Kim Dong-won.<\/p><div id=\"forum-1843220206\" class=\"forum-content forum-entity-placement\">\t\t<div class=\"ad-wrapper\" style=\"width:100%;min-height:250px;text-align:center\">\r\n\t\t\t<!-- In Article Blog -->\r\n\t\t\t<ins class=\"adsbygoogle\"\r\n\t\t\t\t style=\"display:block; text-align:center;\"\r\n\t\t\t\t data-ad-layout=\"in-article\"\r\n\t\t\t\t data-ad-format=\"fluid\"\r\n\t\t\t\t data-ad-client=\"ca-pub-3476569516614521\"\r\n\t\t\t\t data-ad-slot=\"9829044906\"><\/ins>\r\n\t\t\t<script>\r\n\t\t\t\t (adsbygoogle = window.adsbygoogle || []).push({});\r\n\t\t\t<\/script>\r\n\t\t<\/div><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"inline-image\" width=\"1200\" height=\"629\" alt=\"Samsung DS is setting up a new chip production line in Pyeongtaek\" src=\"https:\/\/forum.sbenny.com\/blog\/wp-content\/uploads\/2023\/10\/Samsung-will-further-cut-memory-chip-production-to-stem-losses.jpg\"><br \/>\n<span><strong>Samsung DS is setting up a new chip production line in Pyeongtaek<\/strong><\/span><\/p>\n<p>The problem is low demand for chips: Samsung&#8217;s rivals SK Hynix and Micron Technology have already reduced production last year.  There is still an oversupply of chips and it will take some time for supply and demand to balance.<\/p><div id=\"forum-3344279303\" class=\"forum-content-3 forum-entity-placement\">\t\t<div class=\"ad-wrapper\" style=\"width:100%;min-height:250px;text-align:center\">\r\n\t\t\t<!-- In Article Blog -->\r\n\t\t\t<ins class=\"adsbygoogle\"\r\n\t\t\t\t style=\"display:block; text-align:center;\"\r\n\t\t\t\t data-ad-layout=\"in-article\"\r\n\t\t\t\t data-ad-format=\"fluid\"\r\n\t\t\t\t data-ad-client=\"ca-pub-3476569516614521\"\r\n\t\t\t\t data-ad-slot=\"9829044906\"><\/ins>\r\n\t\t\t<script>\r\n\t\t\t\t (adsbygoogle = window.adsbygoogle || []).push({});\r\n\t\t\t<\/script>\r\n\t\t<\/div><\/div>\n<p>The memory business run by the DS division is described as Samsung&#8217;s &#8220;cash cow&#8221;.  In the second quarter of this year, it brought in KRW 14.73 trillion out of total KRW 60.01 trillion in revenue.  Looking back at the second quarter of last year, the division brought in KRW 28.5 trillion of total KRW 77.2 trillion in revenue and posted an operating profit of KRW 9.98 trillion.<\/p>\n<p> Samsung Device Solutions is currently working to put a new production line into operation at its Pyeongtaek campus, which is another reason for the current losses in addition to the collapse in demand.<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Samsung Device Solutions (DS), the division responsible for its profitable chip manufacturing business, reported a loss in the first quarter of this year, its first red quarter since 2009. Unfortunately, the rest of the year doesn&#8217;t look good in any case, so Samsung is cutting production targets. Operating loss in the first quarter was KRW [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":48014,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[137],"tags":[267,207],"class_list":["post-48013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smartphone-news","tag-mobile-hardware","tag-samsung","entry","has-media"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Samsung will further cut memory chip production to stem losses - Sbenny\u2019s Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/forum.sbenny.com\/blog\/technology\/smartphones\/smartphone-news\/samsung-will-further-cut-memory-chip-production-to-stem-losses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Samsung will further cut memory chip production to stem losses - Sbenny\u2019s Blog\" \/>\n<meta property=\"og:description\" content=\"Samsung Device Solutions (DS), the division responsible for its profitable chip manufacturing business, reported a loss in the first quarter of this year, its first red quarter since 2009. 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Operating loss in the first quarter was KRW [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/forum.sbenny.com\/blog\/technology\/smartphones\/smartphone-news\/samsung-will-further-cut-memory-chip-production-to-stem-losses\/\" \/>\n<meta property=\"og:site_name\" content=\"Sbenny\u2019s Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/sbennymods\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-02T12:43:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/forum.sbenny.com\/blog\/wp-content\/uploads\/2023\/10\/1696250617_gsmarena_000.jpg?v=1696250617\" \/>\n\t<meta property=\"og:image:width\" content=\"952\" \/>\n\t<meta property=\"og:image:height\" content=\"498\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Philip Owell\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Philip Owell\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/forum.sbenny.com\\\/blog\\\/technology\\\/smartphones\\\/smartphone-news\\\/samsung-will-further-cut-memory-chip-production-to-stem-losses\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/forum.sbenny.com\\\/blog\\\/technology\\\/smartphones\\\/smartphone-news\\\/samsung-will-further-cut-memory-chip-production-to-stem-losses\\\/\"},\"author\":{\"name\":\"Philip Owell\",\"@id\":\"https:\\\/\\\/forum.sbenny.com\\\/blog\\\/#\\\/schema\\\/person\\\/a77e10c2915dc8fe75aab9f446e1f0dc\"},\"headline\":\"Samsung will further cut memory chip production to stem losses\",\"datePublished\":\"2023-10-02T12:43:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/forum.sbenny.com\\\/blog\\\/technology\\\/smartphones\\\/smartphone-news\\\/samsung-will-further-cut-memory-chip-production-to-stem-losses\\\/\"},\"wordCount\":308,\"publisher\":{\"@id\":\"https:\\\/\\\/forum.sbenny.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/forum.sbenny.com\\\/blog\\\/technology\\\/smartphones\\\/smartphone-news\\\/samsung-will-further-cut-memory-chip-production-to-stem-losses\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/forum.sbenny.com\\\/blog\\\/wp-content\\\/uploads\\\/2023\\\/10\\\/1696250617_gsmarena_000.jpg?v=1696250617\",\"keywords\":[\"Mobile hardware\",\"SAMSUNG\"],\"articleSection\":[\"Smartphone News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/forum.sbenny.com\\\/blog\\\/technology\\\/smartphones\\\/smartphone-news\\\/samsung-will-further-cut-memory-chip-production-to-stem-losses\\\/\",\"url\":\"https:\\\/\\\/forum.sbenny.com\\\/blog\\\/technology\\\/smartphones\\\/smartphone-news\\\/samsung-will-further-cut-memory-chip-production-to-stem-losses\\\/\",\"name\":\"Samsung will further cut memory chip production to stem losses - 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