Samsung executives say they will not artificially cut production of memory chips and prepare for a recovery in demand

October 28 news, under the influence of the double decline in price and demand, memory chip manufacturers are facing greater pressure. The performance of Samsung Electronics and SK Hynix, the two major memory chip manufacturers, has also been affected. SK Hynix's revenue and net profit both declined in the third quarter compared with the same period last year, of which net profit fell by more than 60%.

Samsung Electronics's overall revenue rose 4% year-on-year to 76.78 trillion won, but revenue from the storage business fell 27% year-on-year, while revenue from the device solutions division, where the memory chip business is located, fell 14% year-on-year with a net profit of 5.12 trillion won, down from 10.07 trillion won in the same period last year and 9.98 trillion in the previous quarter.

Although the memory chip business is not optimistic and faces no small challenges, Samsung executives revealed on a conference call with earnings analysts that they do not intend to cut investment and production as SK Hynix did.

According to foreign media reports, in the third quarter earnings analyst conference call, Samsung Electronics Vice President in charge of memory chip business Han Jin-man said that due to a large number of inventory adjustments from corporate customers, demand is expected to weaken next year, but investment in the data center is expected to expand.

Han Jin-man also said at the meeting that some outsiders expect market conditions to improve in the second half of the year, led by DRAM, but they do not consider artificial production cuts because they need to prepare for demand recovery from a medium-to long-term point of view.