Samsung plans to keep up chip investment

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South Korean company’s guidance bucks broader industry trend to cut back spending and output

Seoul — South Korea’s Samsung Electronics on Tuesday indicated it has no plan to cut investment in chips this year, even as a weak global economy condemns the industry to its worst downturn in over a decade.

Greg Roh, head of research at Hyundai Motor Securities, estimated Samsung Electronics’ market share may reach the upper 40% range for DRAM chips and mid-30% range for NAND flash memory chips in the second half of the year, from about 43% and 32%. The global technology industry has been battling a sharp and sudden downturn in demand since late last year, as companies cut spending on tech products and services while consumers spend less on discretionary goods in the face of surging inflation.Earlier on Tuesday, Samsung reported its lowest quarterly profit since 2014 and said persistent macroeconomic uncertainty will make for a tough first half of this year, though it expects demand to start recovering in the second half.

With memory chip prices falling by double-digit percentages in 2022, Samsung’s chip profit tumbled to about 270-billion won in the fourth quarter from 8.83-trillion won a year earlier, marking the lowest since the first quarter of 2009.

 

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