Samsung's NAND flash memory chips are used in Apple's iPhone

By Kim Yoo-chul, Staff Reporter – The Korea Times – There are growing complaints in the semiconductor industry that Apple, the “smart” phone maker extraordinaire and major chip buyer, is manipulating NAND flash memory prices through its “questionable” purchasing strategies, industry sources said Sunday.

And there is not much that Samsung Electronics, the world’s biggest flash memory maker, and Hynix Semiconductor, the industry’s No. 3 player, can do about Apple’s moves, as the American company increasingly gains leveraging power due to the global popularity of its iPhone handsets and other consumer electronics products.

The summary of the arguments goes as this ― Apple is contributing to the suppression in flash memory prices by ordering more chips from semiconductor makers than the amount it actually buys from them.

“Apple should certainly be blamed for deteriorating the supply and demand cycle in the global NAND flash market,” a senior industry official told The Korea Times, refusing to be named.

“Apple has asked Korean semiconductor makers to produce a certain amount of chips for its digital products, only to actually purchase a smaller volume eventually. The company doesn’t make immediate purchases, but waits until chip prices to fall to the level the company has internally targeted.”

The chip industry had hoped Apple would increase purchases of NAND flash memory chips to boost the output of iPhone and other flagship devices.

The global iPhone craze currently has Apple drenched in robust earnings.

NAND flash memory chips are primarily used in memory cards and storage drives in mobile devices, computers and other consumer electronics products.

Another industry official, also reluctant to be identified, used the words “absurd” to describe Apple’s purchasing strategies.

“Samsung and Hynix both provide chips to Apple and have less of an edge in deciding prices and volume. Apple’s strategy could hurt the industry’s health,” he said.

Both Samsung and Hynix refused to officially comment, as did officials from Apple’s Korean office.

“We already knew about this,” a Samsung official said, without elaborating further. – read more at The Korea Times…

Samsung is the world's leading memory chip maker

By Lee Youkyung – SEOUL, Oct. 30 (Yonhap) — Samsung Electronics Co., the world’s leading memory chipmaker, said Friday that its third-quarter earnings more than tripled from a year ago on a rise in prices of key products.

Net profit stood at 3.72 trillion won (US$3.16 billion) in the July-September period, compared with 1.22 trillion won a year ago, the company said in a regulatory filing.

Sales jumped 29.1 percent on-year to 24.86 trillion won, and operating profits doubled from a year ago to 2.77 trillion won, it said.

Shares of Samsung Electronics traded at 728,000 won on the Seoul bourse as of 10:15 a.m., up 1.39 percent from Thursday’s close. read more at Yonhap News Agency…

Samsung LCD televisions to be produced in China

By Song Jung-a in Seoul and Kathrin Hille in Beijing (Financial Times) China’s fast-growing market for flat panel television sets is attracting fresh investment from foreign components makers.

Samsung Electronics, the largest flat panel maker, said it would set up a $2.2bn joint venture in China to meet growing demand for liquid crystal display panels in the fastest-growing major economy.

Separately, Foxconn, a unit of Hon Hai, the largest electronics contract manufacturer, agreed to set up a $1bn facility for the production and assembly of LCD and LED components in Chengdu.

The investment plans reflect China’s emergence as a key market for LCD panel makers during the global economic slowdown.

TV makers in the country are ramping up production of flat panel TVs, driven by robust consumer demand.

LCD makers have enjoyed higher-than-expected demand this year thanks to Beijing’s subsidies for electronics purchases in rural areas. read more at FT.com…