Samsung tips 5G to drive memory chip recovery

Samsung predicted strong demand for 5G networks and data centres to drive a recovery in the memory chip market, despite increasing economic uncertainties caused by the Covid-19 (coronavirus) outbreak, which will slow smartphone sales, The Korea Herald reported. At the company’s annual shareholder meeting today (18 March) Kim Ki-nam, vice chairman and CEO, said it expects the memory chip market to stabilise this year, with demand increasing on the back of growth in the AI and automotive sectors, and rising investment in data centres and 5G network deployments, the newspaper wrote. The global semiconductor industry declined in 2019 due to oversupply and an ongoing trade war between China and the US. Samsung’s semiconductor sales fell 25 per cent [1] year-on-year to KRW64.94 trillion ($51.7 billion). Kim said its investments are focused on upgrading its manufacturing processes [2]. Koh Dong-jin, president of the vendor’s mobile and network business, said while the smartphone market was expected to post modest growth in 2020 [3], it is contracting due to the widening impact of the virus, Reuters reported. He noted demand for 5G smartphones is forecast to increase. [1] https://www.mobileworldlive.com/featured-content/home-banner/samsung-profit-splutters-on-stunted-sales/ [2] https://www.mobileworldlive.com/devices/news-devices/samsung-readies-high-tier-device-storage-making-unit/ [3] https://www.mobileworldlive.com/devices/news-devices/china-5g-to-revive-global-smartphone-market/

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