The South Korean technology giant in a regulatory filing said it has been reducing the production of certain memory products by unspecified “meaningful levels” to optimize its manufacturing operations, adding it has sufficient supplies of those chips to meet demand fluctuations.
The company predicted an operating profit of
Samsung, which will release its finalized first quarter earnings later this month, said the demand for its memory chips declined as a weak global economy depressed consumer spending on technology products and forced business clients to adjust their inventories to nurse worsening finances.
Samsung had reported a near 70% drop in profit for October-December quarter, which partially reflected how global events like Russia’s war on
“While we have lowered our short-term production plans, we expect solid demand for the mid- to long-term, so we will continue to invest in infrastructure to secure essential levels in clean room capacities and expand investment in research and development to strengthen our technology leadership,” Samsung said.
Samsung last month announced plans to invest
The chip-making “mega cluster,” which will be established in Gyeonggi province by 2042, will be anchored by five new semiconductor plants built by Samsung near its existing manufacturing hub. It will aim to attract 150 other companies producing materials and components or designing high-tech chips, according to South Korea’s government.
The South Korean plan comes as other technology powerhouses, including
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