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Samsung prepares for more mobile RAM demand

Industry sources state that Samsung is cutting back on PC DRAM production to focus on more profitable mobile memory manufacturing.
By
August 5, 2015
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Industry sources suggest that Samsung is preparing to cut production capabilities from its PC RAM business in order to invest additional resources into mobile RAM production. Overall, Samsung is apparently set to reduce its shipments of PC DRAM chips by 30 percent.

Sources suggest that Samsung is gearing up mass producte chips for Apple’s next iPhone, which it will apparently be providing the RAM chips for, along with other components. Smaller rival companies don’t have large enough manufacturing capabilities to meet the full demand. The electronics giant also has its own range of smartphones to equip with RAM this year, including its upcoming high-end Galaxy Note 5, along with selling its chips to a range of other mobile competitors.

“We cannot give details on the reduction of the production. However, it is right to say we are seeking to expand sales of high-end products, such as mobile and server DRAMs.” – Samsung

In a year that has seen shipments from Samsung’s mobile business fail to pick back up, the company is becoming increasingly reliant on its semiconductor business to boost income and profits. The division posted an improved operating profit of 3.4 trillion won ($2.92 billion) in Q2 2015, while its mobile arm remained virtually flat with a similar profit of 2.76 trillion won ($2.36 billion).

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Samsung accounted for 44.1 percent of the global DRAM market in Q1 2015, almost matching its previous high of 45 percent of the market back in last 2011. With PC sales continuing to decline, Samsung would be wise to focus on switching capacity over to cater for growing demand from the expanding mobile market.