[Concall] Samsung Electronics "Selective Memory Production Cuts Next Year... Larger NAND Reduction"

Samsung Electronics stated in its conference call following the Q3 earnings announcement on the 31st that "we continue to adjust production downward," adding, "With flexible production operations and improving demand combined, our inventory levels have been continuously decreasing for both DRAM and NAND since the peak in May, and considering the improved demand environment and the scale of production reduction in Q4, inventory levels are expected to decline at an even faster pace."

They also said, "To achieve inventory normalization quickly, we will continue to implement necessary measures such as additional selective production adjustments," and emphasized, "In particular, the scale of production reduction for NAND will be managed more significantly than that for DRAM for the time being."

Photo by Jinhyung Kang aymsdream@

They continued, "While demand for advanced process products essential for high-performance products such as generative artificial intelligence (AI) and on-device AI is rapidly increasing, the expansion of advanced process supply next year is expected to be limited due to the industry's capex reductions that occurred in 2022-2023," adding, "However, based on the capex maintained by Samsung Electronics to secure mid- to long-term competitiveness, advanced processes such as 1a, 1b nano DRAM and V7, V8 NAND will continue to expand their supply share without production reductions."