Samsung Comments On Chip Sales, Expects Ongoing Weakness To Over To 2023
BENZINGA 7:43 AM ET 9/7/2022
- Samsung Electronics Co, Ltd (OTC:SSNLF) sees the sharp downturn in chip sales extending into next year, marking a significant setback for the semiconductor industry reeling from a dramatic pullback in PCs, smartphones, and data servers sales, the Wall Street Journal reports.
- "The second half of this year looks bad, and as of now, next year doesn't really seem to show a clear momentum for much improvement," said Kyung Kye-hyun, who heads Samsung's semiconductors unit and serves as the company's co-CEO, at a media briefing at its new chip fab in Pyeongtaek.
- Earlier, weaker guidance from Micron Technology Inc (NASDAQ: MU) sent technology and chip stocks lower.
- Despite the slowdown, Kye-hyun said Samsung would continue to expand its investment and R&D spending. He suggested Samsung could, as it did during prior industry dry spells, exploit the downturn to capture more market share.
- Rather than taking sides in the U.S.-China conflict, Kye-hyun chose to find a win-win solution for all sides. China makes up 40% of Samsung's global tech demand.
- Kye-hyun acknowledged difficulties pursuing business in China following U.S.'s Chips Act.
- He added that the Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) rival's contract-chipmaking, or foundry business, had faltered in ensuring sufficient customer capacity during widespread shortages.
- Samsung's semiconductor unit will invest in overseas locations as needed based on market changes, he added.
- Price Action: TSM shares traded lower by 1.57% at $78.77 in the premarket on the last check Wednesday.
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