[Bigiron]

Samsung to cut chip production after profits plunge 96%

Samsung Electronics is set to reduce its memory chip production as it estimates a 96% drop in quarterly operating profit due to a slow global economy and less demand after Covid. Preliminary numbers show that Samsung's operating profits fell $454m in January-March, from $9bn in the previous year. Despite this, Samsung's shares rose by more than 4%.

The company had resisted the move to cut memory chip production compared to its competitors. However, Samsung faces the "double whammy" of dynamic random access memory (DRAM) and NAND memory chips losing money, and needing to update the process technology used in its factories, according to industry analysts.

What factors led to Samsung's decision to cut memory chip production?

[sclim]

start of bull cycle.
last year when china close, europe under high energy cost, spending on other goods are all hit.
now energy price come down already. china open up.
then they said cut production. in next 6 months the warehouse stock will all used up an and go into shortage cycle.