Samsung chip production Archives - Gizmochina

Samsung plans to cut memory chip production by 25%

Soumyakanti — Mon, 01 May 2023 14:12:05 +0000

Samsung Electronics, the South Korean technology giant, reported a staggering 95% drop in operating profit for Q1 2023 compared to the same period last year. The company has attributed this significant decline to the reduced demand for memory chips. While Samsung has not disclosed the exact extent to which it will reduce its memory module production, industry analysts predict a cut of around 25%.

Semiconductor Analyst Minbok Wi from Daishin Securities estimates that Samsung could reduce memory chip production by 20% to 25% in the first half of 2023, compared to the same period in 2022. KB Securities, on the other hand, forecasts that Samsung will reduce NAND flash chip production by 15% and DRAM chip production by over 20%, starting in Q3 2023. Min Seong Hwang, an Analyst at Samsung Securities, believes that if inventory levels do not decrease as expected, the company may need to further reduce production.

Samsung to reduce the production of low-Cost DRAM modules, focus on DDR5

Samsung has stated that it has a sufficient inventory of memory chips to meet mid to long-term demand and is planning to reduce the production of legacy products. Although the company has not specified which memory chips will see a decrease in production, The Korea Herald reports that Samsung will focus on cutting the production of low-cost DRAM modules such as DDR3 and DDR4 due to their dwindling demand. Instead, the company will concentrate its efforts on advanced memory chips like DDR5, which are rapidly gaining popularity.

Recent market trends have not been favorable for Samsung, with the average contract price of an 8GB DDR4 RAM module falling by 19.9% last month, following an 18.1% drop in January. Although prices stabilized in February and March, they have begun to fall once again, despite Samsung’s announcement of a production cut. Market research firm TrendForce predicts a further 15% to 20% drop in prices during Q2 2023 as suppliers grapple with high inventory levels.

While the current outlook for Samsung and the chip industry appears bleak, some analysts remain optimistic, suggesting that a turnaround could be on the horizon in 2024. As the market continues to shift and advanced memory chips like DDR5 gain traction, Samsung’s decision to focus on next-generation technologies could position the company well for a recovery in the coming years.

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Samsung plans chip packaging test line in Japan, move seeks to deepen connections

Sean — Mon, 03 Apr 2023 12:02:37 +0000

Samsung is apparently planning on setting up a new chip packaging test line in Japan. The move from the company is likely a way to deepen its cooperation in the region. The news arrives from five sources close to the matter.

The five people added that the South Korean tech giant is looking to boost its advanced packaging operation whilst building stronger connections with the semiconductor equipment and materials maker in Japan. Furthermore, it would also be the first such test line in the Asian country for Samsung, which is also the world’s largest memory chips manufacturer. This news also arrives as the United States seeks to work together with its allies to counter China’s advancements in semiconductor technology.

Back on Friday, Japan said that it would restrict exports of 23 types of chip making tools, which aligns its technology trade controls with the US’ effort to stop China from building advanced chips. The tech giant is also looking to establish the facility in the Kanagawa prefecture that is near Tokyo. Interestingly, this is also where Samsung has a research and development center.

Unfortunately, finer details regarding the matter like the timeline and investment are still unclear. Although, the total investment would likely be in tens of billions of yens or near 75 million US Dollars. The brand is looking to deepen its relations with the Japanese companies, while also looking at the region for its relatively low labor cost and presence of these chip equipment makers. Simply put, the region offers Samsung access to a local “ecosystem”, as per one of the sources.

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Samsung to Push Through Chip Profit Drop, Won’t Lower Production Level

Sean — Wed, 01 Feb 2023 10:30:14 +0000

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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Samsung sees rising yields on its 3nm chip production line

Sean — Thu, 12 Jan 2023 09:21:35 +0000

Samsung has been working on perfecting its advanced 3nm process technology and it seems like that production yield results for its most cutting edge chip fabrication line has almost been perfected.

Back in 2022, the South Korean tech giant was the first to kick off mass production of 3nm chips. Around this period, the company’s rate of production yield was in the range of 10 percent. Now, it appears that the first generation of 3nm process nodes have reached a “perfect” level of production yield, as per a source close to the matter. The report also claimed that the Samsung Foundry had begun taking orders from fabless clients to begin mass production of its most advanced chips earlier this week.

According to the source, “We are now developing second-generation 3nm chips without delay.” For those unaware, the production yield is basically how many chips remain on the wafer and are key to the profitability of the semiconductor process node. Notably, the 3nm process technology is all the first process node where Samsung applied its first generation GAA structure transistors. Simply put, it is a method on improving the chip performance and energy efficiency.

On the other hand, the world’s largest contract chipmaker TSMC (Taiwan Semiconductor Manufacturing Company) employs its FinFET technology for the 3nm process, which entered mass production just last month. But while TSMC was months behind Samsung, the former also has Apple as one of its major customers.

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Samsung’s only chip manufacturing plant in China reduces production due to lockdown

Zohaib Ahmed — Wed, 29 Dec 2021 13:11:45 +0000

A strict lockdown put in place in Xian to contain COVID-19 in light of the Omicron variant has resulted in Samsung Electronics reducing its chip production in the region. The company through a press release said that it has “decided to temporarily adjust operations” at its chip factory in the city.

The press release further stated that the decision was made to protect the health and safety of our employees and partners, which remains the top priority. Necessary measures will also be taken to ensure that consumers are not affected, including leveraging Samsung’s global manufacturing network.

Chinese authorities had earlier on December 22 enforced a lockdown in Xian, prompting an emergency response from Samsung which shifted all of its available personnel on the production line to continue operating at maximum capacity.

“Due to the lockdown, there are difficulties in employees’ commutes and logistics, so it was inevitable to adjust operations. When the lockdown is lifted, operations will be normalized,” a company official told Korea Herald.

The Xian factory is Samsung’s only overseas memory chip factory and has been operational since 2014. Roughly 40% of the company’s NAND flash chips originate from it.

Meanwhile, Samsung SDI’s electric vehicle battery factory in China seems to be unaffected by the lockdown, with a company official saying that it’s currently “in normal operations.”