SAN JOSE, Calif. - South Korea's Samsung Electronics Co. Ltd. beat analysts' estimates for the third quarter, but the company issued a warning about a pending DRAM glut in the marketplace.
Samsung said net income was 4.46 trillion won ($3.97 billion) for the quarter, up 17 percent from a year ago. According to Bloomberg, Samsung was projected to see a net of 4.5 trillion won. The company posted revenue of 40.23 trillion won in the quarter, up 12 percent from a year ago.
Semiconductor sales were 10.66 trillion won in the period, up 43 percent from a year ago. Of that, memory sales were 7.49 trillion won in the period, up 60 percent from a year ago. Operating profit for the semiconductor unit was 3.42 trillion won for the period, up 17.5 percent year-over-year.
Citing slow PC sales, DRAM was weaker than expected, which led to oversupply in the arena, according to Samsung. NAND demand remained strong, according to the firm. In its outlook, Samsung said ''oversupply would continue with weak PC demand.''
That's bad news for all DRAM vendors. What's more, the race to ship 30-nm-class DRAMs has begun and Samsung has taken the early lead. The 30-nm DRAM race is starting at a time when the market is slowing-if not collapsing, according to VLSI Research Inc. The first half of 2010 was a banner period for the DRAM industry, but now vendors are wondering if the sky is falling amid a technology race in the arena.
Meanwhile, Samsung's LCD business grew 4 percent year-over-year, due to slow demand. Handset shipments were up 12 percent from the previous period.
Is this something to be scary about? As I remember it was predicted that the chip sales are going to slowdown in the last quarter of this year and early next year. I think 2011 can also be a bit bumpy. Any other opinion?
To @double-o-nothing...feast and famine has been a trademark of this commodity memory market as far as I remember (and I am not that young ;-)...major players always think the only way to survive is to increase the capacity as much as possible in good times and squeeze out smaller guys in bad times...this will continue until 2-3 global players remain standing...Kris
David Patterson, known for his pioneering research that led to RAID, clusters and more, is part of a team at UC Berkeley that recently made its RISC-V processor architecture an open source hardware offering. We talk with Patterson and one of his colleagues behind the effort about the opportunities they see, what new kinds of designs they hope to enable and what it means for today’s commercial processor giants such as Intel, ARM and Imagination Technologies.