A global economic slowdown and high-interest rates have dampened demand for most consumer goods following a pandemic-driven boom, forcing chipmakers to cut production in an attempt to stem falling prices.
But in the third quarter, analysts said losses in Samsung’s memory chip business likely shrank to around â‚©3 trillion as Samsung focused on more profitable, higher-end chips such as DRAM chips used in artificial intelligence, while continuing to cut production of older legacy chips.
Rival Micron Technology also forecast a quarterly loss last month, triggering concerns of a sluggish recovery in the memory chip maker’s end markets such as data centres.
But prices of DRAM chips, used in tech devices, began rebounding near the end of last quarter, while prices of NAND Flash chips used in data storage may start recovering as early as the current quarter, winding down the severe industry downturn that began last year, analysts said.
The third quarter is normally strong for Samsung’s mobile and display businesses given that is when it launches its flagship smartphones, and demand for display panels from clients like Apple rises before the debut of the latest iPhone.
Samsung’s revenue likely fell 13 per cent from the same period a year earlier to â‚©67 trillion, Samsung said in the statement.
The company is due to release detailed earnings on Oct 31.
Source: CNA
