As Dynamic Random Access Memory chip prices continue to slid in Korea, the region’s chip makers are making further production cuts in a bid to stop profits tumbling further. Samsung Electronics Co Ltd plans to stop production lines for a week this month, while Hyundai Electronics Industries Co Ltd will also cut manufacturing volume, according to Korea’s Maeil Business Newspaper. The manufacturing cuts made by these two companies alone is expected to reduce global supplies by around 7%. Semiconductor makers around the world have been suffering from the economic problems in Asia and the worldwide glut of devices. The next couple of weeks will see a host of chip companies reporting their financial results, with many bracing themselves for below par performances. At the beginning of last month Motorola Inc said it would take a massive $1.95bn charge in the second quarter and lay off 10% of its work force, or 15,000 people, over the next 12 months in an attempt to cut costs in the face of falling demand and intense pricing pressure in the semiconductor market (CI No 3,425). Advanced Micro Devices Inc is also expected to report a loss and its biggest rival, Intel Corp has warned profits for the quarter will remain flat.
