Despite the global chip market seeing a decline, it seems that Samsung aims to push through the fall in its profits. The company has announced that it will maintain its chip production level amid the downward trend of the memory chip segment.
The South Korean tech giant made this announcement during its latest financial report earlier this week. During this report, the brand stated that it had an operating income of 270 billion won for the fourth and final quarter of 2022. This marked the lowest ever operating income over the last ten years. But while the company is aiming on retaining its production output for its chips, its rivals in the industry, Micron and SK Hynix, have announced their plans to lower their spending on chips.
Due to the current market conditions, both firms are slashing expenses on their facilities this year to produce fewer chipsets. SK Hynix has stated that it plans to reduce its expenditure on its foundries in 2023 by around 50 percent to that it spent in 2022. Similarly, Micron is also lower chip production output by 20 percent this year. Amid these announcements, Samsung revealed that it will still maintain its expenditures despite seeing a drop in profits.
The company believes that retaining its investments during the weak market condition, it is also a “good opportunity” for the future. Furthermore, the company added that it will continue to spend on infrastructure to better prepare for mid to long term demand, since it could impact growth from maintenance or equipment reorganization.
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