Samsung warns chip industry headed for rocky close to 2022

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Samsung Electronics is warning that the semiconductor industry could be in for a rocky close to 2022.

Samsung Electronics isA senior executive at the world’s largest maker of memory chips said the outlook for the second half of the year is gloomy, and Samsung is not yet seeing momentum for a recovery next year. Rival chip makers such as SK Hynix and Micron Technology have cautioned about slowing demand in recent weeks.

Samsung historically has invested heavily in new chip initiatives, which now include the foundry business to better compete with Taiwan’s TSMC for global customers. Samsung kicked off mass production of 3-nanometre chips at its foundry in June, edging out TSMC in a race to build the most advanced chips in the world. Samsung will work on improving the performance and lowering the cost of the chips as it aims to create its next-generation 3nm chips in 2024, Kyung said.

The US government is tightening flows of technologies to China, most recently restricting sales of artificial intelligence chips and cutting-edge chip gear to Chinese customers. It is also considering moves to restrict US investment in Chinese tech companies, while at the same time offering billions of dollars in incentives to bolster semiconductor production on American soil.

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