Samsung Defies Chip Downturn With Aggressive Capital Spending
- Semiconductor segment profit fell 97% amid high inventories
- Memory price declines force Samsung rivals to cut capex
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Samsung Electronics Co. made a surprisingly aggressive decision to keep capital spending at the same level as last year, defying expectations it would go along with rivals in pulling back to alleviate pressure on an already-battered semiconductor industry.
Chipmakers have been struggling with a historic slump in the price of memory, with consumers cutting back on purchases of gadgets months after pandemic-driven production ramp-ups kicked in. Inventory has piled up, forcing double-digit price slides that are erasing profit and forcing Samsung’s smaller competitors to slash both output and spending.