# Samsung to Extend Output Cuts While Awaiting AI-Powered Recovery | Tech News (HT Tech) > Samsung, which on Thursday reported better-than-expected net income, said artificial intelligence will provide a boost to memory demand before the year’s end. # Samsung to Extend Output Cuts While Awaiting AI-Powered Recovery ## Samsung, which on Thursday reported better-than-expected net income, said artificial intelligence will provide a boost to memory demand before the year’s end. Jul 28 2023, 07:20 IST ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook.png) ![Follow on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/follow-us-facebook-hover.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Share.png) ![Share](https://images.hindustantimes.com/tech/static/revamp/images/png/Shareclicked.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp.png) ![Share on WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/whatsapp-hover.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter.png) ![Share on Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/twitter-hover.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook.png) ![Share on Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/facebook-hover.png) ![Bookmark](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmark.png) ![Bookmarked](https://images.hindustantimes.com/tech/static/revamp/images/png/Bookmarked.png) ![Samsung](https://images.hindustantimes.com/tech/img/2023/07/28/1600x900/SAMSUNG-ELEC-RESULTS--0_1690508635551_1690508666543.JPG) Samsung and Hynix aim to weather the current economic uncertainty by sticking with promises to curtail output of NAND chips used in PCs and phones in a bid to arrest sliding prices. (REUTERS) ![Author Photo](https://images.hindustantimes.com/tech/static/revamp/images/png/HTTech-new-circle-logo.png) ### By BLOOMBERG Samsung Electronics Co. pledged to keep cutting memory chip production while forecasting a rebound in sales in the second half of the year, as AI demand helps global tech spending climb out of a post-Covid funk. Samsung, which on Thursday reported better-than-expected net income, said artificial intelligence will provide a boost to memory demand before the year’s end. Korea’s largest company plans to double its capacity to make high-bandwidth memory (HBM), a next-generation technique used to help train AI, by 2024. That outlook and commitment toward developing the new technology went down well with investors who sent its shares 2.7% higher in Seoul. The focus now is on a race with SK Hynix Inc. to develop tools vital to AI, allowing the world’s two largest memory chipmakers to capitalize on a boom that’s emerged since OpenAI’s ChatGPT captivated investors and consumers last fall. Also read click here. Until that demand kicks in, Samsung and Hynix aim to weather the current economic uncertainty by sticking with promises to curtail output of NAND chips used in PCs and phones in a bid to arrest sliding prices. “The worst from memory is behind us,” said Sanjeev Rana, an analyst with CLSA Securities Korea Ltd. Prices were rebounding in the second quarter for Hynix, and will probably gain ground in the third quarter for Samsung, he said. Samsung expects generative AI to drive a “rapid increase in demand” for high-performance memory able to process large amounts of data, said Jaejune Kim, executive vice president of Samsung’s memory business. But he warned, “Demand for general servers and storage was relatively limited.” Samsung said it won’t provide a bit shipment guidance for the full year, due to macroeconomic uncertainties. Overall memory inventory seems to have peaked in May, but a tepid post-Covid recovery in China’s hitting demand for logic chips, it said. The company, a bellwether for the industry because of its leading position in chips, electronics and smartphones, said its net income fell 86% to 1.55 trillion won ($1.2 billion) in the quarter ended in June. That still beat an average estimate of 925 billion won, thanks to a lift from a weak won. Earlier this month, Samsung had reported its worst decline in quarterly revenue in more than a decade. Rival SK Hynix, which already supplies HBM chips to Nvidia Corp., will likely be the bigger beneficiary of any demand for chips to help develop and train generative AI platforms, analysts said. On Wednesday, SK Hynix reported sales ahead of estimates and declared that AI will soon ignite the long-awaited rebound. Its shares jumped more than 9.7%. “Hynix had the first-mover advantage, but I expect Samsung to catch up,” Rana said of the HBM market. “Samsung’s HBM shipments will accelerate in 2024.” Samsung is now trying to catch up on two fronts: it seeks to win more orders for AI-supporting chips while it also expands its foundry business, where it trails Taiwan Semiconductor Manufacturing Co. Of Samsung’s entire quarterly capex of 14.5 trillion won, more than 90% was spent on chips, it said. Samsung’s results come after TSMC cut its outlook last week and postponed production at its Arizona project to 2025 — a warning signal that underscores the extent of the uncertainty roiling the global chip arena. Investors are looking to the tech industry’s largest companies for hints on when demand for electronics and semiconductors will bounce back — a challenging task given the uneven global outlook, soaring inflation and China’s post-Covid turbulence. In particular, Samsung is a barometer for a $160 billion memory industry that built capacity too rapidly during better times and is now grappling with bulging inventories. Its output cuts represent a significant step for a company that in the past continued production through industry downturns. Another potential long-term growth driver are Samsung’s automotive memory chips, which the company expects to grow more than 30% on average for the next five years. Apart from semiconductors, Samsung’s smartphone business — the world’s largest — is fighting to entice customers. The Korean company now expects its smartphone shipments to rise in the current quarter, and the average selling price to improve from the second quarter. Samsung introduced the fifth generation of its foldable smartphones on Wednesday, seeking to counter upcoming rival products from Apple Inc. It’s also studying a lower-cost option in a bid to win market share in the increasingly popular foldable phone category. Executives also said the company is working on a mixed-reality device and will build an ecosystem to support content development in the nascent arena that now includes Apple’s Vision Pro headset. Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel. 28 Jul, 07:20 IST samsung artificial intelligence ![HT Tech Awards](https://tech.hindustantimes.com/ht-tech-power-list-awards-2026/httech-awards-banner-new.webp) ### Related Stories 29 Sept 2026 71,690,483,399,370 NEXT ARTICLE BEGINS ![View all](https://images.hindustantimes.com/tech/static/revamp/images/png/view-all-icon.png) ## Tips & Tricks ![Ghibli-style art](https://images.hindustantimes.com/tech/img/2025/03/28/414x233/ChatGPT_Ghibli_style_images_1743161814450_1743161814596.jpg) ### How to turn your photos into Ghibli-style art with ChatGPT for free: Step-by-step guide ![How to create an invitation using iPhone’s new Apple Invites app- Step-by-step guide](https://images.hindustantimes.com/tech/img/2025/02/14/414x233/invites_1738728829564_1739543695649.png) ### How to create an invitation using iPhone’s new Apple Invites app- Step-by-step guide ![Apple TV app arrives on Android phones and tablets: What you get and how to install it](https://images.hindustantimes.com/tech/img/2025/02/13/414x233/unnamed_1739426557335_1739426567634.jpg) ### Apple TV app arrives on Android phones and tablets: What you get and how to install it ![Vodafone Idea OTT plans](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Vodafone Idea users can now stream 17 OTT apps with one subscription: Here's how ![Android data transfer methods](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### How to transfer data from one Android to another using Google backup, USB-C cable, and more ## Editor’s Pick ![iPhone 16e launched with A18 chip, Apple AI—bringing flagship power on a budget: Check specs, price](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iPhone 16e launched in India: All details about the new budget mobile from Apple ![DeepSeek was founded in China with only a fraction of the budget of the top AI companies in the US.](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### DeepSeek AI: How it works, who’s behind it, how it’s different from ChatGPT, and its big US market impact explained ![iPhone 17 Air likely to get this feature that iPhone 17 Pro models may miss out on](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iPhone 17 Air likely to get this feature that iPhone 17 Pro models may miss out on ![Google Whisk AI explained: How remixing works, availability, and how it differs from Gemini](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Google Whisk AI explained: How remixing works, availability, and how it differs from Gemini ![iOS 18.4 beta arriving soon: Know why it is the biggest iPhone update](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### iOS 18.4 beta arriving soon: Know why it is the biggest iPhone update ## Trending Stories ![Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order ![Infinix Note 50s 5G+](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC ![Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more ![Apple Intelligence AI training](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Apple plans to train AI using your on-device data without accessing personal content or emails: Report ![CMF Buds 2](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside keep up with tech ![Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-facebook.png) ![Twitter](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-twitter.png) ![WhatsApp](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-whatsApp.png) ![Facebook](https://images.hindustantimes.com/tech/static/revamp/images/png/tech-facebook.png) ## Gaming ![Check out these five gaming monitors under ₹20,000,](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Top 5 gaming monitors under ₹20000 you should consider ![gaming consoles](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Grab gaming consoles at discounted rates during Amazon Great Indian Festival: Up to 72% off ![Pokémon GO Wild Area 2025](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Pokémon GO Wild Area 2025 to bring Grimmsnarl family, Shiny Hatenna, and global challenges ![Shade Silver](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Shade Silver free on Steam for a limited time: Here’s how to get it ![Call of duty](https://images.hindustantimes.com/tech/static/revamp/images/png/ht-tech-bg-img-90-66.png) ### Call of Duty: Black Ops 7 skips Switch 2 at launch, release date and price leak ![View all](https://images.hindustantimes.com/tech/static/revamp/images/png/view-all-icon.png) ## Trending News ### Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order ![Airtel 5G SIM card will now be delivered in 10 minutes with Blinkit- How to order](https://images.livemint.com/static/static/1x1_img.gif) ### Infinix Note 50s 5G+ set to launch in India with 64MP camera and MediaTek Dimensity 7300 SoC ![Infinix Note 50s 5G+](https://images.livemint.com/static/static/1x1_img.gif) ### Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more ![Xiaomi X Pro QLED Series sale starts in India: Check price, availability, and more](https://images.livemint.com/static/static/1x1_img.gif) ### Apple plans to train AI using your on-device data without accessing personal content or emails: Report ![Apple Intelligence AI training](https://images.livemint.com/static/static/1x1_img.gif) ### CMF Buds 2 key features and price revealed ahead of April 28 launch: Details inside ![CMF Buds 2](https://images.livemint.com/static/static/1x1_img.gif) ## Trending Gadgets Mobiles Laptops Tablets ![HT Tech](https://images.hindustantimes.com/tech/static/revamp/images/png/HT_tech-new.gif) - https://tech.hindustantimes.com/tech/news/samsung-to-extend-output-cuts-while-awaiting-ai-powered-recovery-71690483399370.html