Samsung is one of the largest manufacturers of DRAM chips in the world with a marketshare of 44.1 percent, but due to declining PC sales, the company seems to be adapting to the new market. According to industry insiders, the company is making preparations to increase the production of its mobile RAM chips.
Korea Herald is reporting that Samsung is cutting down the production of PC DRAM chips by 30 percent and diverting its resources in the production of mobile RAM chips. Sources suggest that the South Korean semiconductor giant is gearing up for the mass production of RAM chips that will be used in Apple’s next iPhone, along with other components including the smartphone’s storage and SoC chips.
Looking at the company’s earnings report from the past few quarters, it is evident that Samsung has failed to improve its smartphone business, so it is becoming increasingly reliant on its semiconductor business to boost revenue and profits. Samsung’s semiconductor division posted an improved operating profit of KRW 3.4 trillion ($2.92 billion) in Q2 2015, while the chaebol’s smartphone business stayed flat with an operating profit of KRW 2.76 trillion ($2.36 billion).