Samsung Electronics plans to continue cutting chip production to cope with oversupply, while preparing for the industry-wide focus on investment and production of high-end artificial intelligence chips in 2024. Samsung has significantly reduced chip production this year to combat the industry downturn, but as the market gradually recovers, they will further adjust production, especially NAND flash memory chips.
Jaejune Kim, executive vice president of the memory business, said on the earnings call that it has received purchase inquiries from customers seeking to ensure the safety of components, indicating that people think the industry has hit bottom. Although inflation is expected to slow, it will not be enough to bring inflation back within the target range set by the central bank. However, continued production cuts may accelerate the recovery of traditional memory chips.
Samsung plans to increase HBM production capacity to meet the demand for DRAM chips such as high-bandwidth memory (HBM) in 2024. This move has attracted market attention, especially the competition with companies such as SK Hynix in the field of AI memory chips.
Samsung reported slightly improved third-quarter results, with its mobile devices unit benefiting from higher sales of foldable smartphones. Samsung also said mobile demand may stabilize next year and plans to increase chip investment to prepare for future demand. This reflects rapid changes in the tech industry, particularly an increased focus on artificial intelligence and a shift by major companies toward in-house research and development.
(Source: inquirer Image source: freepik)
