Samsung drastically cuts memory chip production
Samsung Electronics is going to drastically reduce its memory chip production after seeing a 96 percent decrease in its quarterly profit.
Samsung is going to drastically reduce the memory chip production due to the huge decline in sales after the economic recession has affected the world due to the Corona epidemic.
According to Samsung’s preliminary data, the profit from January to March reached only 600 million, or 10 million won, while last year, Samsung’s quarterly earnings were 14 trillion won.
Despite the slowdown in memory chip manufacturing, Samsung has reported an increase in its share by 4 percent.
“We have been gradually reducing the production of memory chips. This will secure the production supply of the chip later.’ Samsung’s South Korea tech giant said.
Not only this, it has been reported that during the Corona period, sales decreased as people started buying other new electronic devices instead of Samsung.
Although there has been some improvement in Samsung’s memory production in the past 2 years, Samsung’s manufacturers are still struggling due to demand and supply in the market.
When there was a global economic recession. At that time, the demand for memory cards suddenly decreased,’ said Peter Hanberry, manager and researcher of Bain & Co., ‘Manufacturers stopped placing orders to make chips. Empty they were more focused on selling.’
After this, he said that the demand for high-speed has dried up all at once as it becomes difficult for small manufacturers to supply. He said, ‘Saptalai chain was destroyed by small manufactures. After that, even where there was a lot of demand, when there was no demand, the supply dried up all at once.’
Samsung is the world’s largest manufacturer of televisions, tablets and smartphones. However, the global economic downturn has forced it to cut back on memory chip production much more than its competitors.
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