Samsung recorded the lowest smartphone factory utilization ever as global demand fell

CTOnews.com, Nov. 16, according to Businesskorea, the utilization rate of Samsung's smartphone factory hit an all-time low in the third quarter of this year.

The utilization rate of Samsung Electronics smartphone factory was 72.2%, down 8.1 percentage points from 80.3% in the same period last year. This means that only seven of the 10 production lines are running in the third quarter of this year, the lowest level since Samsung Electronics began disclosing its smartphone factory utilization separately in 2010.

Samsung's factory utilization is falling as inventories accumulate due to falling global demand. Samsung currently has inventory assets of 57.3198 trillion won (about 307.234 billion yuan), up 38.5% from 4.1384 trillion won at the end of 2021. Its memory DRAM, NAND flash and IT products have inventory assets of 16 trillion won.

CTOnews.com learned that according to LG Electronics' quarterly report in the third quarter of this year, the company's factory utilization also declined. The utilization rate of its refrigerator factory fell from 129.7% a year ago to 113.3%, washing machines from 105% to 88%, air conditioners from 113.2% to 102.9%, and visual equipment from 96.4% to 81.1%.