Heard on the Street: The South Korean company’s ambitious investments in its foundry business and increasing politicization of the chip sector will be tailwinds over the long run
and the increasing politicization of the chip business will be tailwinds over the long run.
Market carnage has been especially obvious in the semiconductor sector, and Samsung is no exception. Its shares have lost around 40% of their value since early 2021, wiping out almost $300 billion of market value. Weakening demand and high inventories of memory chips—the company’s key profit driver—make life particularly tough for Samsung right now. Industry tracker TrendForce expects prices for NAND flash, a type of memory chips used for storage, to fall 15% to 20% in the fourth quarter—after a 13% to 18% decline in the quarter before. Samsung’s operating profit for both quarters is expected to fall more than 20% year-over-year, according to analysts’ estimates on S&P Global Market Intelligence.
But Samsung is preparing for life after the current bust. It said this week it will increase production capacity for making advanced chips by more than three times by 2027 in a bid to compete with
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Seoul’s reprisal blows up as U.S., South Korea respond to North Korean missile testA malfunctioning South Korean ballistic missile blew up as it plowed into the ground during a live-fire drill with the U.S. that was a reprisal for North Korea’s successful launch a day earlier
Read more »
Korean Authorities Freeze $39 Million of Crypto Tied to Do KwonSouth Korean authorities continue freezing assets belonging to or tied to Terraform's Do Kwon.
Read more »
South Korean missile launched in response to North Korea crashes and explodesThe explosion and subsequent fire panicked and confused residents of the South Korean coastal city of Gangneung.
Read more »
U.S. and South Korea hold live-fire drills in response to North Korean missile launch over JapanThe U.S. and South Korean have held joint live-fire military drills in response to Pyongyang's longest-range ballistic missile test that flew over Japan
Read more »