Shulou(Shulou.com)11/24 Report--

CTOnews.com, October 1 (Xinhua)-- Samsung Electronics, the world's largest memory maker, cut its chip sales outlook for the second half of the year by 32% compared with its April forecast, as chipmakers around the world are preparing for an economic slowdown, The Korea Economic Daily Global Edition reported.

According to the latest data released by the Korean Bureau of Statistics, semiconductor production fell 1.7 per cent in August 2022 from a year earlier, a sharp reversal from the 17.3 per cent increase reported in July.

It is worth mentioning that this is the first decline since January 2018, a sign that chipmakers are preparing for a slowdown in global demand. On the other hand, South Korean chip stocks surged 67.3%.

Samsung has previously said that the sharp decline in memory chip sales could continue into 2023. In the past 2021, Samsung memory chips had revenue of $60 billion (about 426.7 billion yuan), accounting for 80% of the entire chip business and 25% of Samsung's total revenue.

Kyung Kye-hyun, head of Samsung's semiconductor business, said at a meeting with employees on Monday that Samsung had cut its chip sales forecast for the second half of this year by 32 per cent compared with its April forecast.

Of course, the company did not mention the exact figure, but the market consensus is 67.03 trillion won (about 332.469 billion yuan). According to the market consensus, Samsung's reduced chip sales are expected to be around 45 trillion won (about 223.2 billion yuan).

CTOnews.com learned that the contract price of PC general DRAM products was $2.85 in September, down 30.5% from $4.10 in July, according to market research firm DRAMeXchange. Over the same period, NAND flash memory fell 10.6% from $4.81 to $4.30.

Some industry insiders point out that the sharp price reduction is partly due to a drop in demand for PC caused by the late outbreak and weak smartphone sales in China. "DRAM and NAND flash suppliers and customers are struggling with growing chip inventories," said one chip industry executive.

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