Samsung to continue trimming memory chip production and how it will impact the world
Samsung to continue trimming memory chip production as it reported huge losses in the quarter that ended in June. Its net income fell 86% to 1.55 trillion won, a huge blow to the company.
Samsung is a Korean brand that is known for its electronic products. It has the eighth highest global brand value and is one of the leading manufacturing conglomerates headquartered in Seoul, South Korea. It was founded in 1938 but is still one of the leading companies all over the world.
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Samsung expects global demand for memory chips to recover in the second half of 2023 but be constrained to the high-end chips used in Artificial Intelligence https://t.co/oVdZgkldc7 pic.twitter.com/IW7qdzPhtQ
— Reuters (@Reuters) July 27, 2023
Why does Samsung want to reduce memory chip production?
Samsung has stated that the use of Artificial Intelligence has increased the demand for high-end chips that are used in AI. Though the company says that the worst for the memory chip market is over, the market for non-AI chips might see some stagnancy.
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The low demand for semiconductor chips was what resulted in a huge loss for the company.
Samsung said in a statement, “Production cuts across the industry are likely to continue in the second half, and demand is expected to gradually recover as clients continue to destock their (chip) inventory.”
However, the production of NAND flash chips that store digital data will have to be adjusted.
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— Rahul (@sairahul1) July 28, 2023
After this announcement, the shares of Samsung saw a rise of 2.7% as its outlook and working on new technology was taken positively.
