Feeds

Samsung puts chips on ice

But only for eight days

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

Samsung is suspending semiconductor production, in its fourth shut-down of the year. Starting tomorrow, the production moratorium will last for eight days and will affect both memory and non-memory semiconductor production lines. But the main thrust is to reduce DRAM production, thereby reducing the worldwide glut of memory components. Samsung is the world's biggest DRAM producer with 19 per cent of the world market. This week, a potentially strong competitor was created in its own backyard through the Korean-brokered merger of the lossmaking semiconductor interests of LG and Hyundai. The new company will account for 16 per cent of the worldwide DRAM market, leapfrogging NEC and Micron into second place. However, the merger is not expected to be smooth. Korean chaebols are not noted for their love of each other: expect tough negotiations over equity, management control and responsibility for outstanding debt. The companies also use different methods of chip production; this will limit early scope for making scale economies, especially in light of the political difficulty Korean companies face in making large-scale redundancies. This year has seen a modest revival in DRAM prices, since Samsung and Korean rivals LG Semicon and Hyundai Electronics began their DRAM production cutbacks. But in the face of systemic over-production, worldwide it will be interesting to see if the vendors can make these price rises stick. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.