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chip production

Why is Samsung’s cut in chip production good news for industry?

As a severe recession in the worldwide semiconductor business continues, Samsung Electronics Co. Ltd. disclosed on Friday that it would make a significant reduction in chip production after reporting a worse-than-anticipated 96 percent drop in quarterly operating income.

The biggest memory chip & Television manufacturer in the world saw its shares rise 3 percent in early trade, whereas rival SK Hynix Corp. had its shares rise 5 percent as investors embraced the idea of decreasing production to maintain pricing power.

chip production
Image Source: bloomberg.com

In a succinct initial earnings statement, Samsung calculated that its net revenue decreased to 600 billion won which is about 455.5 million USD in January-March from 14.12 trillion won a year ago. In 14 years, this quarter’s revenue was the worst of any other.

Also Read: Are Google’s AI supercomputers faster than Nvidia’s?

“Memory demand dropped sharply… due to the macroeconomic situation and slowing customer purchasing sentiment, as many customers continue to adjust their inventories for financial purposes,” the company said in a statement

“We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured,” it added, in a reference to those with sufficient inventories.

Source:economictimes.indiatimes.com

For Samsung, the hint of a decrease in output is quite important because it had said before it was only going to make modest adjustments, such as pausing production to fix production lines, contrary to a total shutdown. It failed to specify the size of the targeted cut.

The first-quarter income was less than the more conservative 873 billion won Refinitiv SmartEstimate. Early in the week, some predictions were scaled back.

According to business records, it was the minimum revenue since the first quarter of 2009, when it reached 590 billion won.

Data center operators, cellphone and computer manufacturers, as well as other semiconductor customers, are avoiding making fresh chip shopping and using up stocks as a result of the weakening customer demands for tech products caused by growing inflation.

Experts projected that the decline in memory chip costs and the subsequent decline in inventory values caused the semiconductor division to suffer a quarterly economic loss of much more than 4 trillion won which is 3.03 billion USD.

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This would mark the semiconductor industry’s first quarterly deficit since the initial quarter of 2009, which is a significant departure from what is often a cash cow that, in good years, contributes around 50 percent of Samsung’s earnings.

According to Samsung, revenue probably decreased 19 percent compared to the same time last year to 63 trillion won. In the coming weeks, the company is scheduled to announce comprehensive profits, containing divisional breakdowns.

mixed-reality platform

Samsung, Google & Qualcomm team up on mixed-reality platform

The newest tech behemoth to embrace augmented and virtual reality is Samsung. The smartphone manufacturer claims that it will collaborate with Qualcomm and Google on a future mixed-reality platform.

The information was released on Wednesday during Samsung’s Unpacked event and comes after rumors that Apple may launch the first ever-virtual reality headset this year. Hiroshi Lockheimer, SVP of Android at Google, and Cristiano Amon, CEO of Qualcomm, both took the stage to jointly announce the partnership.

mixed-reality platform
Image Source: techweekmag.com

No specific products were mentioned by Samsung as being under development. Additionally, it didn’t offer a release date for any planned mixed-reality services or products.

Technology that combines the traits of augmented and virtual reality is referred to as mixed reality. Similar to Google Glass, augmented reality combines software and the physical world by superimposing graphics on the user’s surroundings.

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In contrast, virtual reality technologies like the Meta Quest 2 immerse the user in a 360-degree virtual environment. Passthrough cameras, a method that enables AR and virtual reality technologies to merge into one product line, are helping a new generation of VR headsets advance mixed reality, nevertheless.

This is possible with the Quest 2 and Quest Pro headsets from Meta and the future Vive XR Elite. The identical idea should be used in Apple’s anticipated headset.

The development arrives at a time when virtual, augmented, and mixed-reality platform are receiving more attention. According to Bloomberg, Apple is planning to unveil a mixed-reality headgear in 2023 that might cost $3,000 or more.

Google unveiled a new pair of AR glasses at Google I/O last year with a focus on language translation, and Sony’s PlayStation VR 2 and HTC’s Vive XR Elite are both set to debut this month. Before the year is out, Meta’s Quest 3 will be released.

With the exception of the Gear VR device, which it released in multiple incarnations between 2015 and 2017, Samsung has been very quiet regarding virtual reality.

Given that Samsung, Google, and Qualcomm already collaborate to develop smartphones, the alliance makes logical. Samsung creates the physical components of its Galaxy devices, while Qualcomm provides the processor and Google is in charge of the Android operating system’s supporting software.

Also Read: Samsung’s Galaxy Unpacked 2023 Event: What to expect?

Since many of the leading VR and AR headsets use Qualcomm chips, the company has been driving the development of phone-compatible AR and VR headsets for many years. Additionally, Qualcomm is working with Meta on upcoming smartphones and Microsoft on the hardware for its next augmented reality glasses. It’s unclear if this new partnership will work with Qualcomm’s current Snapdragon Spaces technology for phones and headsets.

Samsung unveiled its plans for mixed reality alongside the release of its latest Galaxy Book and Galaxy S23 smartphone range. The new range, which comes in three versions—standard, Plus, and Ultra—offers a number of enhancements and is currently up for preorder.

Galaxy Unpacked 2023

Samsung’s Galaxy Unpacked 2023 Event: What to expect?

Galaxy Unpacked 2023 is first and foremost an official live event hosted by Samsung on February 1st, 2023 in San Francisco. However, viewers from all over the globe will be able to witness the event live online on the Samsung Newsroom website, the company’s official website, and the official YouTube channel.

Samsung revealed the Galaxy S22 lineup, which included the S22, S22 Plus, and S22 Ultra, at a launch event quite similar to the one it did this year in February 2022. The Galaxy Tab S8, Tab S8 Plus, and Tab S8 Ultra were three other tablets that the company unveiled with it.

Galaxy Unpacked 2023
Image Source: thehindubusinessline.com

The Galaxy S series is the only thing that comes to mind when the words “premium” and “Galaxy” are mentioned. As a result, experts are positive that the Samsung Galaxy S23 range will be the event’s biggest attraction at Galaxy Unpacked 2023.

The latter represents the company’s 2023 flagship smartphone lineup. The Galaxy S23, Galaxy S23 Plus, and Galaxy S23 Ultra will be the minimum number of devices in the S23 series. Although all 3 of them will be launching in early February, customers may currently make a reservation.

Also Read: What were the main highlights of CES 2023?

A modified version of Qualcomm’s Snapdragon 8 Gen 2 chipset will power the Galaxy S23. As a result, the smartphones will deliver excellent performance and may launch as the most potent Android devices available.

The Galaxy S23 will probably include a slew of further improvements in addition to the powerful processor. The high-end Galaxy S23 Ultra includes a very outstanding camera module, brighter screens, and enhanced thermals and battery life.

The majority of reports state that Samsung won’t raise the Galaxy S23 lineup’s base price. But customers should prepare to fork over a sizable extra for these flagship models. Fortunately, Samsung is notorious for offering hefty early-bird discounts, so if users move quickly (or make a purchase), they can save a significant amount of money.

Additionally, experts anticipate Samsung will provide users with an update on the Galaxy S22 series and let users know whether the device will be discontinued or kept on the market alongside its replacement. A price reduction will be required if the latter is the case.

Last but not least, Samsung might also have a few software announcements to share, such as a future One UI update.

There is just one other important product launch beside the Galaxy S23: the Galaxy Book 3 range of laptops. Both the Samsung Galaxy Tab Fold and the Galaxy Tab S9 series are unlikely to debut. According to reports, both have been postponed until late 2023 or early 2024.

Last year, Samsung did introduce a new series of Tab S8 tablets along with the Galaxy S22. However, a story from the South Korean publication The Elec claims that the corporation postponed the launch of its next tablet (likely the Tab S9) from its initial December 2022 launch date because of a decline in consumer electronics demand.

The Elec claims that a new generation of tablets will still be released this year, so they may still debut at Samsung’s expected Galaxy Z Fold 5 and Z Flip 5 foldable during the company’s customary summer presentation.

Galaxy S23

Galaxy S23 Expected to Launch at Samsung Event

Samsung’s upcoming Unpacked event is likely to be highlighted by the Galaxy S23. On February 1st, Samsung will hold a live Unpacked event in San Francisco, California. It’s Samsung’s first live event since the pandemic compelled companies to concentrate solely on virtual ones.

Galaxy S23
Image Source: businesstoday.in

Samsung is anticipated to unveil its newest trio of premium smartphones, the Galaxy S23, at the event. Press personnel will be present, and the function will take place in The Masonic Auditorium. Additionally, Samsung intends to broadcast the event live on its web page and on YouTube

Leaked promotional materials suggest that the Galaxy S23 would include improved low-light photography, which suggests that cameras will play a significant role in the unveiling.

The main camera of the Galaxy S23 Ultra is said to have a 200MP sensor, a significant improvement over the 108MP sensor seen on the Galaxy S22 Ultra at the moment The new phones, according to rumours from reputable leakers Ice Universe and Steve Hemmerstoffer would have circular cutouts on the rear for the camera lenses.

This kind of camera is already present in the Galaxy S22 Ultra. But according to the rumour from Hemmerstoffer, it might trickle down to the Plus variant and take the place of the Galaxy S22 Plus’s present camera module.

On Tuesday, Samsung began accepting reservations for its forthcoming products in the US.

If users request a reservation for one device, the company will give a $50 Samsung credit, and if a user requests a reservation for two devices, the company will give users a $100 Samsung credit.

No payment data is required and the deal is valid through February 1st. Although the pricing for Samsung’s as-yet-unannounced phones is unknown, the majority of S23 pricing speculations point to the base model, Plus version, and Ultra option costing the same as Samsung’s most recent models.

In that case, the regular S23 would cost $799, followed by the Plus ($999), and the Ultra ($1,199). To put it another way, Samsung credit might be useful.

Samsung is anticipated to introduce its new Galaxy S lineup at a period when financial headwinds have reduced overall phone sales. Market analysts Counterpoint Research and IDC both released analyses in December indicating that global shipments may grow less than anticipated in 2023.

It’s unknown if Samsung will only unveil the Galaxy S23 series during the Unpacked event on February 1 or if additional items are in development. Samsung unveiled the Galaxy Tab S8 tablets at the Unpacked event that marked the release of the Galaxy S22 last year.

The Galaxy Z Fold 4 and Galaxy Z Flip, together with two Galaxy Watch 5 models and Galaxy Buds Pro 2 wireless earbuds, were displayed at a second Unpacked event in August.

It’s possible that more tablets or even Galaxy Book computers will be unveiled during this year’s Galaxy Unpacked event, but with three new phones to showcase, Samsung may decide to focus exclusively on those models. Certainly, there haven’t been many rumours beyond the release of the Galaxy S23.

Apple

Apple to ditch Samsung and start making in-house screens in 2024

Apple Inc. intends to use its personalized screens in smartphones as sooner as 2024, in an attempt to decrease dependence on technology partners such as Samsung and LG, and introduce many more constituents in-house.

According to people familiar with the matter, the firm intends to start by replacing the screen in the most expensive Apple smartwatches by the finish of next year.

Apple
Image Source: cnbctv18.com

The displays are an upgrade from the existing OLED, organic light-emitting diode, benchmark to a technology known as microLED, as well as Apple plans to introduce the screens to all other gadgets, such as the iPhone, in the future.

The modifications are part of a larger plan to substitute Apple supplies with in-house components, which will give the firm more influence over the style as well as the functionality of its products.

The tech behemoth has abandoned Intel Corp. chips in favor of in-house designs in its Mac computers but also intends to do so with the vital wireless elements in its iPhones.

Apple’s Cupertino who is a representative based in California declined to comment.

Apple’s display switch has been in the works for several years. According to a report by Bloomberg in 2018, Apple intended to design its displays, beginning with the Apple Watch. The move will be a setback for Samsung Display Co. as well as LG Display Co., the watch’s primary screen suppliers.

Wei Chen, who leads Apple’s display technology team within Johny Srouji’s Hardware Technologies division, is in charge of the project. The firm has started assessing the microLED screens on an upgrade to its current high sports watch, the Apple Watch Ultra.

In contrast to existing Apple Watches, the next-generation screens are intended to provide brighter, more vibrant colors as well as the capacity to be seen from an angle. As per the people who have seen the displays and asked to remain anonymous because the task is still under wraps, the material appears to be painted on top of the glass.

The microLED screens will be Apple’s first entirely in-house designed as well as developed screens. In addition to Samsung and LG, the firm mainly sources displays from a wide range of manufacturers which includes Japan Display Inc., Sharp Corp., and BOE Technology Group Co.

chip production

Samsung Elec to expand chip production at the largest plant next year

Despite estimates of an economic downturn, Samsung Electronics intends to expand chip production capacity at its greatest semiconductor power station next year, according to a South Korean media outlet late on Sunday.

In contrast, rival chipmakers have reduced their investment due to declining demand and chip oversupply.

chip production
Image Source: gizmochina.com

Analysts believe that Samsung’s persistence in investing will help it boost sales of memory chips in the market and assist its share price once demand starts to recover.

According to the Seoul Economic Daily, citing unnamed industry sources, Samsung intends to expand the P3 factory located in Pyeongtaek, South Korea, by incorporating a 12-inch wafer capacity for DRAM memory chips.

The plant will also be expanded with an additional 4-nanometer chip capacity, which will be manufactured under foundry contractual agreements that is, as per the client designs as stated in the paper.

P3, the firm’s largest chip production plant, started the manufacturing of NAND flash memory chips with cutting-edge technology this year.

According to the newspaper, Samsung plans to add at least ten extremely ultraviolet pieces of machinery next year but Samsung did not respond to the report.

In October, it stated that it was not planning intentionally reduce chip production, disobeying the industry’s trend of reducing production to meet mid-term to long-term demand.

“We plan to stand behind our original infrastructure investment plans,” Han Jin-man, executive vice president of memory business at Samsung, said then.

Source: money.usnews.com

Micron Technology Inc, a competitor in memory chips, announced last week that it would reduce its financing in fiscal 2023 somewhere between 7 billion USD and 7.5 billion USD, down from 12 billion USD in fiscal 2022. It would also significantly reduce capital expenditure plans in fiscal 2024, according to the firm.

Taiwanese chipmaker TSMC reduced its 2022 annual fund budget by at least 10 percent in October, sounding more careful than usual about future demand.

“The chip industry downturn will add to the difficulties of No. 2 and below chip companies, and have a positive impact on the market control of top companies such as Samsung,” Greg Roh, head of research at Hyundai Motor Securities, said in a client note on Monday.

Source: money.usnews.com