KoreanShares of rival companies rose following Samsung Electronics announced that it would cut production of memory semiconductors. Samsung’s move might ease the glut that is pushing down prices across the industry.
Samsung says it will reduce memory semiconductor production to “meaningful levels”statement. Earnings for the first quarter were the lowest since the 2009 global financial crisis.Rice industryShares of Micron Technology closed 8% higher on the U.S. stock market on Thursday. It was the largest one-day increase in more than a year.riceWestern Digital (WD) rose more than 8%, its biggest gain in regarding two months.
In addition to sluggish demand for home appliances following the COVID-19 pandemic, broader economic shocks such as rising inflation are putting pressure on producers. Part of Samsung’s reluctance to cut production so far, despite the economic downturn, has been to take market share from competitors such as Micron.
In a report, Stifel analyst Brian Ching said Thursday’s announcement “has strengthened the silver lining”, adding that Samsung’s move “improved memory supply and demand, the most imbalanced in decades.” It may lead to “,” he said.
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Original title:Samsung’s Lower Chip Production Is a Boon for Rival Micron (1)(excerpt)
