Samsung’s Cut in Chip Production Is Good News for Industry
- Korean company pledged cut after smallest profit in decade
- DRAM chip prices are expected to fall 10% in current quarter
Samsung Electronics Co. memory chips.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
Samsung Electronics Co.’s pledge to cut memory chip production has lifted shares of rival manufacturers because the move could potentially ease a supply glut that’s hammered prices across the industry.
Samsung said Friday it would cut production to a “meaningful level” after reporting its smallest profit in more than a decade. Chipmaker Micron Technology Inc. rose 8% on Monday in New York, its biggest single-day jump in more than a year. Shares of Western Digital Corp. gained 8.7%, their best performance in more than two months.