2023-07-27 10:30:41
Samsung
After the boom in the corona pandemic, in which people increasingly equipped themselves with electronic devices, the demand for components such as memory chips collapsed.
(Photo: dpa)
Seoul The electronics group Samsung wants to continue its production cuts because of the persistently meager demand for semiconductors. For certain products, the output will be further adjusted, such as NAND memory chips, said Jaejune Kim, vice president of Samsung’s semiconductor division, on Thursday in a conference call to present the final quarterly figures.
He did not give any further details. Competitor SK Hynix announced on Wednesday that it would cut NAND production by another five to ten percent. After the boom in the corona pandemic, in which people around the world equipped themselves with electronic devices for home office or pastime, the demand for such components collapsed.
This was also reflected in Samsung’s more detailed figures for the second quarter: The semiconductor division reported an operating loss of 4.36 trillion won (equivalent to around 3.1 billion euros), after a profit of 9.98 trillion won in the same period last year. Compared to the first three months of the year, the loss was at least slightly lower.
The division is also likely to be in the red in the current quarter – but analysts surveyed by Refinitiv expect the deficit to halve to 2.3 trillion won. The South Korean electronics giant, which unveiled its latest model of a foldable smartphone on Wednesday, reported a 96 percent slump in consolidated profit earlier this month.
According to Samsung’s assessment, however, the bottom should have been reached. “We expect demand to gradually recover as customers continue to destock,” the company said. These prospects also reassured investors: Samsung shares rose almost three percent.
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