Samsung to extend production cuts after $7 billion chip loss in first half

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Samsung expects global demand for memory chips to recover in the second half of 2023 but be constrained to the high-end chips used in Artificial Intelligence

SK Hynix, which said on Wednesday that it would cut NAND output by a further 5% to 10%, is seen benefiting more from the concerted efforts due to its heavy exposure to those chips.

Losses shrank slightly from the first quarter's 4.58 trillion won due to strong memory chip demand from AI, which led to higher-than-expected shipments of DRAM chips that hold information from applications while the system is in use. "Although Samsung was first in these high-density chips, it didn't anticipate these markets will grow so fast, and was superceded by SK Hynix in speed and yield," Lee said.for HBM3 chips last year, while Samsung expects to release its own HBM3 chips later this year, analysts noted.

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