Samsung Electronics to maintain memory chip capacity
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Samsung Electronics is maintaining memory chip production capacity despite a glut and falling prices.
"There has been no discussion about a cut for now," Lee Jung-bae, president of the chipmaker's memory business, said on Wednesday.
Samsung Electronics is the world's largest maker of memory chips, with more than 40 percent of the DRAM market.
Maintaining production sharply contrasts with the plans of some competitors, who are cutting back in anticipation of continued market weakness.
Boise, Idaho's Micron announced last week that it would cut production of dynamic random-access memory (DRAM) and NAND flash chips, the first major memory chipmaker to confirm a production cut. Tokyo's Kioxia made a similar announcement, saying it will reduce NAND Flash capacity at its Yokkaichi and Kitakami facilities by 30 percent.
With demand for electronic devices flagging and inventories of devices and chips ballooning, the supply of chips has far outpaced demand, pushing down the prices of DRAM and NAND flash chips.
BY PARK EUN-JEE [park.eunjee@joongang.co.kr]
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