Samsung refused to cut chip output. Its chip division lost KRW 14.87T.
In 2022 Samsung kept building memory through the downturn. In 2023 its chip division lost KRW 14.87 trillion, and in Q1 2025 SK Hynix overtook it in DRAM revenue share, 36% to 34%.
Transcript
In 2023, Samsung's chip division lost roughly 14.87 trillion Korean won. The whole Samsung group made an operating profit of just 6.57 trillion.
It started with a choice in 2022. Memory prices were collapsing. Samsung refused to cut output and kept its capital spending near prior levels.
On Samsung's Q3 2022 earnings call, executive Han Jin-man said: we are not considering an artificial production cut. The theory: a strong player who keeps building through a downturn absorbs abandoned share.
Instead, Samsung's cash return on DRAM plunged to roughly 3% in 2023, from more than 30% before the pandemic.
Then share moved the other way. In Q1 2025, SK Hynix overtook Samsung in DRAM revenue share, 36% to 34%, ending Samsung's lead since 1992.
Building through a downturn only pays if you build what the upturn wants. One cycle does not disprove the theory. But it shows the bet is on the next demand, not just the next price.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
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