Synopsis

Samsung has hinted that rather than slicing investment with respect to slowing demand and falling prices, it would go for controlling short-term production through equipment adjustment, line maintenance, and adapting cutting-edge chipmaking techniques. The company will increase capital investment proportion for research and development.

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Samsung Electronics based in South Korea renowned for topnotch chip manufacturing on Tuesday specified that the company is not going to truncate investment in chips in 2023, even as a fragile global economy berates the industry to its worst downtime in over a decade.

Analyst Choi Yoo-June, at Shinhan Securities, said, "Samsung might be seeing this time as a good opportunity to increase market share, which should help it in the long term, at the expense of SK Hynix and Micron,"

The guidance defies a wider industry trend of cutting spending and output, raising concerns that the world's largest memory chipmaker will use its financial backing and excellent profit margins to steal market share from smaller competitors.

Greg Roh, head of research at Hyundai Motor Securities, estimated Samsung Electronics' market share may reach the upper 40% range for DRAM chips and mid-30% range for NAND flash memory chips in the second half of the year, from around 43% and 32%.

Samsung the chip manufacturing giant has hinted that rather than slicing investment with respect to slowing demand and falling prices, it would go for controlling short-term production through equipment adjustment, line maintenance, and adapting cutting-edge chipmaking techniques. The company will increase capital investment proportion for research and development.

The global chipmaking leader said the capital expenditure of 2023 will remain the same as of 2022 opposite to Micron Technology Inc and SK Hynix which said they will truncate their chipmaking investment. Also, Taiwan Semiconductor Manufacturing Co Ltd, a bigger competitor of Samsung Electronics will have a spending cut.