Samsung might make a profit

SAMSUNG ELECTRONICS' memory chip business is expected to return to the black in the second quarter.

The reasons for the sudden return to good fortune are production cutbacks and steady rises in chip prices.

The Korea Times quotes Samsung executives as having said that the increased portion of highly-advanced DRAM and NAND flash memory chips in its sales has also helped the company to save manufacturing costs.

The news that Samsung is getting healthy again is good news for the industry. Samsung is the industry leader in both DRAM and NAND flash chips.

It has been in trouble for nearly two quarters now. In the first quarter DRAM prices fell by over 80 per cent, while NAND prices decreased by some 40 per cent.

However although the recovery is mild, there is optimism that consumers might be ready to spend more money on electronics gadgets.

Samsung has flogged more than 70 million NAND flash chips to Apple for new Iphone models.

It is likely that making enhanced chips by using 50-nanometer level processing technology in DRAM and 40-nanometer level in NAND will also make Samsung a buck or two. µ