Samsung to Cut Production of Memory Chips

Not everyone can afford a new Samsung EVO, apparently.

A report from the South Korean news outlet, Yonhap News Agency, stated that Samsung is once again lowering down production of memory chips, including their very own Exynos brand.

The company responsible for the production, Samsung Device Solutions (SDS), reported yet another financial loss in the third quarter this year, about 4 trillion KRW (~USD 2.96 billion). The first time this has been in the red since 2009. So it’s reasonable why Samsung want to tone production down. This report is even lower than in the second quarter of around 4.35 KRW (~USD 3.2 billion)

The company has started to slash DRAM production to just 30 percent and 40 percent for NAND Flash. This is an even bigger cut compared to the first half of the year from 20 percent and 30 percent respectively.

The outlying problem is mainly due to stiff competiton and lower demands. Even their rivals SK Hynix and Micron Technology also slowed down production of memory chips. Also, there is a surplus of chips globally so this production cut will persist for some time.

Finally, Samsung Device Solutions is also working on a new production line located at the Pyeongtaek Campus. Another reason why production is slowing.

Source: Yonhap News Agency