Samsung will temporarily shut down 50% of the production capacity of one of its divisions due to low demand. Information taken from the South Korean website. Chosun Daily.
According to the local report, the affected sector is: Samsung Foundry. This is the company’s unit Responsible for semiconductor production for external customers — especially companies that create their own processors but do not have factories. So far the company has not made any statement on the subject.
Currently Samsung shut down approximately 30% of its chip production line in 4 nm (nanometer), 5 nm and 7 nm architectures at at least two sites. However, by the end of the year, this number is expected to gradually reach almost half of operations without affecting ongoing orders.
What’s going on at Samsung Foundry?
According to the local newspaper, the real reason for the action may be: low market demand. Samsung has invested heavily in its Foundry division in recent years; This means significant expenditure on the construction of factories and the installation of equipment for the processor production line.
Despite, failed to attract customers to serve this new structure. Well-known companies in the industry, such as Qualcomm and Nvidia, continue to order the majority of their processor stocks from Taiwan’s TSMC, the leader and frontrunner in this industry.
In addition, Chinese companies that previously demanded semiconductors for these architectures also reduced their orders. 3nm chips currently produced by companies, including its own Exynos 2500will still not be able to meet the quality standards required within the company.
Samsung would prefer to cease operations due to lack of prospects for new contracts and also as a way to save moneybecause keeping the units running without production still incurs significant irreversible costs.
Recently, the South Korean company denied rumors that it was considering spinning off its semiconductor manufacturing division, especially after three consecutive months of operating losses. This was the alternative Intel found, with problems in the region and currently in the process of restructuring after an internal crisis.
Source: Tec Mundo

I am a passionate and hardworking journalist with an eye for detail. I specialize in the field of news reporting, and have been writing for Gadget Onus, a renowned online news site, since 2019. As the author of their Hot News section, I’m proud to be at the forefront of today’s headlines and current affairs.