Analysts predict that Samsung Electronics will continue to reduce production in Q3, and the DS division is expected to lose 4 trillion won

Samsung Electronics expects to reduce chip deficit in the third quarter, mainly as a result of continued chip production cuts

KB Securities analyst Kim Dong-won predicts that Samsung Device Solutions (DS) unit will fall in the third quarter The quarterly loss will be about 4 trillion won, down from 4.35 trillion won in the same period last year. He said that since the second half of the year, Samsung has increased its DRAM production reduction to 30% from 20% in the first half. NAND Flash production reduction increased from 30% in the first half to 40%.

In the first quarter of this year, Samsung’s DS division suffered an operating loss of 4.6 trillion won (Note from this site: current approximately 24.932 billion yuan). This was Samsung’s first financial loss in 14 years.

According to analyst Choi Bo-young, although production cuts and the dynamic balance between supply and demand have begun to push up the price of memory chips, they will also put pressure on profits

Hanwha Investment Securities analyst Kim Kwang-jin predicts, Samsung's chip results will fall short of market expectations as the company appears to be taking longer than previously expected to fully recover its chip business. He estimates the DS unit will lose 3.7 trillion won in the third quarter

Greg Roh, head of research at Hyundai Motor Securities, said Samsung's production cuts have had a minimal impact on it so far. However, the commissioning of a new chip production line in Pyeongtaek Park has led to an increase in depreciation costs, which has begun to eat into profits. He also pointed out that Samsung’s DS division’s losses reached 3.6 trillion won

Market statistics agency TrendForce said that Samsung’s actions to solve the problem of overcapacity exceeded previous expectations. Samsung has taken a "decisive step" to cut NAND flash memory production by 50% in response to continued weak demand, which could help stabilize chip prices and boost demand in the coming months.

TrendForce also added: "Samsung's significant production cuts may trigger a chain reaction: the prices of its main products may rise."

Advertising Statement: This article contains external jump links (including but not Limited to hyperlinks, QR codes, passwords, etc.), intended to provide more information and save screening time, and are for reference only. Please note that all articles on this site are accompanied by this statement

The above is the detailed content of Analysts predict that Samsung Electronics will continue to reduce production in Q3, and the DS division is expected to lose 4 trillion won. For more information, please follow other related articles on the PHP Chinese website!