Samsung Electronics may reduce production of cost-effective memory chips such as DDR3 and DDR4 by 25 percent. The top chip maker is moving towards reducing production due to reduced market demand and increased inventory. The Korea Herald reported this information about a group of analysts.
Samsung released its first quarter earnings last week. It saw the South Korean tech giant’s profit fall to a 14-year low. The semiconductor or chip sector, known as the most expanding sector amid the Corona pandemic, is going through a crisis in the last few quarters. Like other chip makers, Samsung’s sales have fallen. However, the tech giant did not confirm how much Samsung’s memory chip sales fell in the last quarter.
However, considering the market situation, local analysts in South Korea say that Samsung can reduce the production of memory chips by 15 to 25 percent.
Industry sources say Samsung may reduce production of cost-effective DRAM modules such as DDR3 and DDR4. Rather, the top chip maker company will focus on better memory chips like DDR5.
