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"Samsung, in a roundabout way, is saying production will decrease slightly," said analyst Kim Yang-jae at Daol Investment and Securities. CHIP PROFIT TUMBLESEarlier on Tuesday, Samsung reported its lowest quarterly profit since 2014 and said persistent macroeconomic uncertainty will make for a tough first half of this year, though it expects demand to start recovering in the second half. At 4.3 trillion won ($3.49 billion), October-December operating profit was Samsung's lowest quarterly profit in eight years. Some analysts expect the chip business to book a loss in the first quarter, pulling overall profit below that of the fourth. In mobile, Samsung said fourth-quarter profit fell to 1.7 trillion won from 2.66 trillion won a year earlier, as a decline in low- and mid-end smartphone sales was greater than expected.

At 4.3 trillion won ($3.49 billion), October-December operating profit was Samsung's lowest quarterly profit in eight years. Revenue fell 8% to 70.5 trillion won. Some analysts expect the chip business to book a loss in the first quarter, pulling overall profit below that of the fourth. Memory chip rivals Micron Technology Inc (MU.O) and SK Hynix Inc (000660.KS) had already said they would slash investment in 2023. Investors will be watching for whether Samsung avoids mentioning a direct chip production cut - as is its usual stance - or rather gives a clear signal of production cuts given the severity of the memory chip down-cycle.

☆ Chipmaker STMicro sees sales growth slowdown in fourth quarter
▼ + stars: | 2022-10-27 | by ( Mathieu Rosemain | ) www.reuters.com time to read: +2 min

Bigger rival Texas Instruments Inc (TXN.O) earlier this week that it expected demand across most of its end markets to decline, while South Korea's SK Hynix Inc (000660.KS) warned of an "unprecedented deterioration" in memory chip demand. STMicro said it expected fourth-quarter sales to edge up by 1.8% from the previous quarter to about $4.4 billion. Co-controlled by the Italian and French governments, STMicro said demand rose across all its products in the third quarter, beating market expectations. Net revenue in the third quarter rose to $4.32 billion, above the company's own guidance and the $4.24 billion analyst consensus compiled by Visible Alpha. Reporting by Mathieu Rosemain; Editing by Muralikumar Anantharaman, Subhranshu Sahu and Simon Cameron-MooreOur Standards: The Thomson Reuters Trust Principles.

☆ Chip Maker SK Hynix Slashes Capital Spending
▼ + stars: | 2022-10-26 | by ( Jiyoung Sohn | ) www.wsj.com time to read: 1 min

SEOUL—SK Hynix Inc., one of the world’s biggest chip makers by revenue, halved its planned investments for next year due to deteriorating market conditions, as the semiconductor industry’s downturn continues. Predicting a prolonged oversupply of memory chips, the South Korea-based SK Hynix said it would cut capital expenditure by more than 50% from the current year. The company said its 2022 spending would be between 10 trillion and 20 trillion won, equivalent to between $7 billion and $14 billion.

Investors looked beyond the bleak outlook to welcome the aggressive investment cut, sending SK Hynix shares 1.7% higher in a bet the scale of the action would help control chip oversupply and prop up chip prices. SK Hynix said its operating profit fell to 1.66 trillion won ($1.16 billion) in the July-September quarter, from 4.2 trillion won a year earlier. The result was below analysts' expectations of a 1.87 trillion won profit, according to Refinitiv SmartEstimate. SK Hynix said its 2022 investment is expected to be at the "upper range of 10-20 trillion won ($7-14 billion)", meaning 2023 investments could fall below 10 trillion won. SK Hynix also warned of uncertainties involving its chip plants in China due to U.S. export restrictions on advanced chip equipment to China aimed at slowing Beijing's technological advances.

[1/3] The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, New York, U.S., November 17, 2021. Google's results bode ill for Facebook parent Meta Platforms (META.O), which is especially reliant on advertising and reports results on Wednesday. Microsoft fell 2% and chipmaker Texas Instruments , which forecast quarterly revenue and profit below estimates, was down 5%. Shares in Spotify (SPOT.N), which also warned on slow advertising growth, slid 4%. "During the quarter we experienced expected weakness in personal electronics and expanding weakness across industrial," said TI boss Rich Templeton.

☆ Chipmaker UMC cuts capex in readiness for prolonged downturn
▼ + stars: | 2022-10-26 | by ( Sarah Wu | ) www.reuters.com time to read: +3 min

The company has revised 2022 capital expenditure down to $3 billion, compared with a previous plan for $3.6 billion, said finance chief Chitung Liu. However, expansion in Singapore and Tainan in southern Taiwan are progressing as planned to meet long-term supply commitments, Wang said. However, UMC will continue to monitor developments and "take risk-management measures as necessary", he added. Shares in UMC closed 3.4% down on Wednesday and have fallen about 41% this year. ($1 = 32.1210 Taiwan dollars)Reporting by Sarah Wu Additional reporting by Ben Blanchard Editing by David GoodmanOur Standards: The Thomson Reuters Trust Principles.

Oct 25 (Reuters) - Apple Inc (AAPL.O) said on Tuesday it would make fresh investments to set up solar and wind projects in Europe and called on its suppliers to decarbonize operations related to the production of iPhones and other products. Apple had previously asked suppliers to commit to 100% renewable energy for Apple's production. Apple has been carbon neutral for its global corporate operations since 2020. Apple said the European investments are part of a strategy to address about 22% of its carbon footprint coming from the electricity customers use to charge their devices. In total, the planned investments will add 3,000 gigawatt hours per year of new renewable energy on the grid, Apple said.

☆ SK Hynix Q3 profit plunges as economic downturn hurts chip demand
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +1 min

[1/2] Memory chips by South Korean semiconductor supplier SK Hynix are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/IllustrationSEOUL, Oct 26 (Reuters) - South Korea's SK Hynix Inc (000660.KS) posted a 60% drop in third-quarter profit, missing estimates as red-hot inflation hurt demand for electronic devices and memory chips that go in them. The world's second-biggest memory chipmaker said on Wednesday its operating profit fell to 1.66 trillion won ($1.16 billion) in the July-September quarter, from 4.2 trillion won a year earlier. Analysts expected a profit of 1.87 trillion won, according to Refinitiv SmartEstimate. Prices of DRAM chips, used in devices and servers, fell around 20% in the third quarter from the second, SK Hynix said.

And as of midnight Tuesday, vendors also cannot support, service and send non-U.S. supplies to the China-based factories without licenses if U.S. companies or people are involved. The company said the change would help avoid disruptions to the supply chain and that the authorization is for a year. Licenses for Chinese chip factories were likely to be denied. Taiwan Semiconductor Manufacturing Co.(2330.TW) and Intel Corp (INTC.O) also operate chip factories in China. The Chinese chip facilities are not expected to get any reprieve.

☆ SK Hynix secures one-year waiver from U.S. govt on chip equipment for its facilities in China
▼ + stars: | 2022-10-12 | by ( ) www.reuters.com time to read: 1 min

SEOUL, Oct 12 (Reuters) - South Korea's SK Hynix Inc (000660.KS) said on Wednesday it has received authorization from the U.S. Department of Commerce to receive chip equipment needed for its chip production facilities in China for one year, without seeking additional licensing requirements. Register now for FREE unlimited access to Reuters.com RegisterReporting by Heekyong Yang and Jane Lanhee Lee; Editing by Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

As published, the rules require licenses before U.S. exports can be shipped to facilities with advanced chip production in China, as part of a U.S. bid to slow Beijing's technological and military advances. Register now for FREE unlimited access to Reuters.com RegisterThe U.S. had planned to grant licenses to supply non-Chinese chip factories on a case-by-case basis, while licenses to Chinese chipmakers will face a presumption of denial. As of midnight Tuesday, vendors also cannot support, service and send non-U.S. supplies to such China-based factories without licenses if U.S. companies authorize, direct or request them. A White House spokesperson also did not respond to a request for comment. Register now for FREE unlimited access to Reuters.com RegisterReporting By Jane Lanhee Lee and Karen Freifeld; Editing by Kim Coghill and Richard PullinOur Standards: The Thomson Reuters Trust Principles.

☆ Chinese regulator gives greenlight to fund targeting Korean chipmakers
▼ + stars: | 2022-10-10 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI, Oct 10 (Reuters) - China's securities regulator has given the greenlight to the country's first mutual fund targeting top Chinese and South Korean chipmakers, an official at Huatai-PineBridge Fund Management Co said, amid an escalating Sino-U.S. tech war. The China Securities Regulatory Commission's approval comes amid heightened geopolitical tensions between the world's two largest economies. The exchange-traded fund (ETF) will invest in top Korean semiconductor firms including Samsung Electronics Co (005930.KS) and SK Hynix Inc (000660.KS), as well as Chinese chipmaking giants such as Semiconductor Manufacturing International Corp and Montage Technology Co (688008.SS). In 2021, South Korea was China's second-biggest exporting country in equipments, including chipmaking tools, and Chinese exports to South Korea have also been rising, the fund manager said. South Korea said on Saturday there would be no significant disruption to equipment supply for Samsung and SK Hynix's existing chip production in China from the U.S. move.

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