Samsung Electronics reaffirmed Tuesday that there will be no artificial production cut in its memory semiconductor production, even though the chip giant suffered from plunging profits in the fourth quarter of 2022. Instead, the company aims to proactively respond to chip demand, which it projects will recover in the future. In its earnings announcement, Samsung said fourth quarter sales dropped 7.97 percent year-on-year to 70.46 trillion won ($57.22 billion), while operating profit plunged 68.5 percent to 4.31 trillion won.
Concerns are growing over the possibility that Korean semiconductor manufacturers are losing ground against their foreign rivals, as the National Assembly passed a bill intended to limit an increase in tax benefits for domestic chipmakers. Late last Friday, the ruling and opposition parties agreed to revise the Restriction of Special Taxation Act, in order to increase the tax credit for conglomerates semiconductor facility investments to 8 percent from 6 percent, while maintaining the credits for medium-size enterprises and smaller firms at 8 percent and 16 percent, respectively.
Korea s dependence on semiconductor equipment from the U.S., Japan and the Netherlands has reached 77.5 percent, sparking worries that the high level of dependence could be geopolitically and diplomatically risky in the future. Some experts are advising Korea to join the Chip 4 Alliance to ensure a stable supply of semiconductor equipment, according to a Korea International Trade Association (KITA) report, Thursday.