Top Stories
Top Stories
Wires

BRIEF-S.Korea's Samsung Elec says low visibility around Japanese export curbs

July 31 (Reuters) - Samsung Electronics Co Ltd earnings call:

* NO LONGER BELIEVES IT'S POSSIBLE TO PREDICT FREE CASH FLOW DUE TO PROLONGED GLOBAL TRADE CONFLICT AND OTHER UNCERTAINTIES

* NAND Q2 BIT GROWTH AROUND 30%, AVERAGE SELLING PRICE DECLINED MID-TEENS

* MEMORY CHIP MARKET CONDITIONS TO REMAIN VOLATILE IN H2 OVER TRADE RESTRICTIONS OF SEMICONDUCTOR MATERIALS

* ITS MOBILE DIVISION WILL RESPOND QUICKLY TO FAST CHANGING ENVIRONMENT INCLUDING TRADE RESTRICTIONS

* FACING BURDEN OF NEW APPROVAL PROCESS AND UNCERTAINTY REGARDING JAPAN'S EXPORT CURBS

* VISIBILITY IS LOW ON JAPAN'S TRADE MEASURES

* DIFFICULT TO SAY WHETHER RECENT SPOT PRICE SPIKE WILL IMPACT LONG TERM CONTRAC PRICES

* RECENT HIKE IN MEMORY CHIP SPOT PRICES UNDERLINES CONCERNS OVER SUPPLY STABILITY

* MANAGEMENT IS PUTTING UTMOST EFFORT TO MINIMISE NEGATIVE IMPACT FROM JAPAN'S EXPORT CONTROLS

* TO SELL GALAXY FOLD THIS YEAR IN LIMITED COUNTRIES, LIMITED VOLUME

* TO EXPAND FOLDABLE PRODUCTS IN VARIOUS FORMS

* EXPECTS NOTE 10 TO ACHIEVE HIGHER SALES VOLUME THAN ITS PREDECESSOR NOTE 9

* NOT CONSIDERING REDUCING WAFER INPUT

* WILL MANAGE MEMORY CHIP PRODUCTION LINES OPERATION FLEXIBLY AS DEMAND CHANGES

* DRAM INVENTORY LEVEL IN Q2 WAS SIMILAR TO THAT OF PREVIOUS QUARTER

* H2 INVENTORY LEVEL TO DECREASE GRADUALLY, BUT PACE IS HARD TO PREDICT ON EXTERNAL UNCERTAINTIES

* NAND INVENTORIES ALREADY STARTED TO DECREASE SIGNIFICANTLY

* NAND INVENTORIES TO REACH BALANCE LEVEL THANKS TO STRONG DEMAND IN H2

* DATA CENTER CUSTOMERS HAVE RESTARTED PURCHASING SERVER DRAM FROM LATE Q2

* EXPECTS INCREASED EXTERNAL UNCERTAINTIES MAY LEAD TO MORE VOLATILITY, DIFFICULT TO PRESENT SPECIFIC SUPPLY AND DEMAND FORECASTS IN DRAM

* PLANS TO EXPAND FOUNDRY CAPACITY AROUND EUV LINE AND CUTTING-EDGE IMAGE SENSORS

* EXPECTS TO START OPERATING HWASEONG EUV CHIP PRODUCTION LINE IN H1 2020

* SEEKS TO INCREASE SMARTPHONE SALES ON PREMIUM AND MASS MODELS IN H2 INCLUDING 5G AND FOLDABLE

* NAND DEMAND RISING FROM Q2 AS CUSTOMERS BELIEVE PRICES HAVE BOTTOMED OUT

* HAS INCREASED FREQUENCY OF REVIEWING INVESTMENT PLANS IN MEMORY BUSINESS DUE TO HIGH LEVEL OF UNCERTAINTIES, POTENTIAL HIGHLY VOLATILE MARKET

* YET TO FINALIZE NEXT YEAR'S MEMORY CAPEX PLAN

* EXPECTS 10% INCREASE IN DRAM CONTENT ADOPTION YEAR-ON-YEAR BASIS Further company coverage: (Reporting By Ju-min Park)

Related Tags