Analysts believe that Samsung's behavior of not reducing chip investment is to take the opportunity to seize the semiconductor market share.

(Associated Press)

[Financial Channel/Comprehensive Report] Samsung Electronics (Samsung) announced last year's Q4 financial report on Tuesday (31st). Decades of severe downturn, but they still have no plans to cut chip investment this year.

According to comprehensive media reports, Samsung has not reduced investment due to slowing demand or falling prices. Instead, it will avoid short-term production through production line maintenance, equipment adjustments, and shifting to advanced chip processes. Samsung’s move runs counter to the reduction of expenditures by other semiconductor industries. The outside world is worried that Samsung may use its financial strength and ultra-high profit margins to seize market share from smaller peers.

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Choi Yoo-june, an analyst at Shinhan Securities, said: "In the long run, Samsung may see this as a good opportunity to increase its market share, but SK Hynix and Micron may pay the price."

Greg Roh, director of research at Hyundai Motor Securities, estimates that Samsung's DRAM and NAND chip market share in the second half of this year is expected to reach 43% and 32%, respectively.

Kim Yang-jae, an analyst at Daol Investment and Securities, also said that Samsung said in a roundabout way that production will decline slightly, but investors want to see more substantial production cuts or signs of a rapid market rebound. As of press time, Samsung Shares fell more than 3 percent to 61,100 won intraday on Tuesday.

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