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

CTOnews.com January 15 news, the outlook for the chip industry is bleak, the pace of expansion of the global technology industry is gradually slowing. Samsung Electronics, a memory chip maker, may scale back its foundry investment in response to the industry downturn, the Korea Economic Daily said. According to reports, although Samsung maintains its medium-and long-term position on expanding investment, it will flexibly adjust the scale of investment in the near future.

Indeed, until the final months of 2022, Samsung executives said they would stick to the company's production plans while advancing its chip manufacturing technology to cope with rising inventories and slowing demand.

However, industry watchers said Samsung was likely to follow TSMC's lead in reducing capital spending as analysts predicted a sharper-than-expected slowdown.

Samsung's wafer investment spending this year is likely to be lower than last year and is estimated to return to 12 trillion won (currently about 65.04 billion yuan) in 2020 and 2021, according to industry insiders.

The latest research report from Citigroup's global market points out that as the price of memory chips falls faster than expected, causing its profits to fall below the break-even point, the possibility that Samsung will adjust its chip supply strategy by cutting investment is increasing.

Samsung said in early January that operating profit in the fourth quarter of last year fell 69 per cent to 4.3 trillion won, the lowest in eight years, mainly due to reduced demand for electronics due to the weak global economy, which affected its chip business, as reported below by CTOnews.com.

"Samsung expects semiconductor chip profits to reach 13.1 trillion won in 2023, half that of 2022."

"Samsung estimates that Q4 operating profit of 4.3 trillion won in 2022 plunged 69% compared with the same period last year, while chip prices and smartphone shipments fell."

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