Samsung Electronics announced its intention to persist with production reductions in order to alleviate an oversupply of chips, with a focus on preparing for 2024. In that year, the company anticipates that the industry will pivot towards heightened investment and production of high-end chips for generative artificial intelligence.

Samsung has scaled down its chip production throughout this year as a response to an unparalleled downturn in the industry. The company has also indicated its plans for further adjustments in production, particularly for NAND flash memory chips, as the market begins to rebound.

During an earnings call, Jaejune Kim, the Executive Vice President of Samsung’s memory business, revealed that the company has received purchase inquiries from server customers looking to secure components. This interest has grown as awareness spreads that the industry has reached its low point. Kim stated, “Considering the normalization of inventory levels, we expect the market to recover, particularly in PC and mobile memory.”

Samsung, the world’s largest memory chip and smartphone manufacturer, anticipates a surge in demand for DRAM chips, including high-bandwidth memory (HBM), in 2024. This surge is expected due to the proliferation of on-device AI functions.

Samsung faces competition in the field of memory chips for AI from...

READ MORE HERE