Samsung halts new procurement orders for components and parts

Samsung Electronics has halted new procurement orders for a brief period, telling suppliers to either delay or reduce shipments of components and parts, Nikkei Asia news report said.
Samsung Neo QLED 8KSamsung has postponed orders for a wide range of components, including chips,  electronics parts and final product packages.

The order applies to components for multiple key product lines, including TVs, home appliances and smartphones.

Samsung aims to review its inventory levels of both components and final products to ensure stock on hand are manageable.

Samsung Electronics reported a record revenue of KRW 77.78 trillion and operating profit of KRW 14.12 trillion (+51 percent) for the third quarter of fiscal 2022.

Korea-based Samsung Electronics has overtaken US-based Intel to become the world’s No. 1 chipmaker by revenue last year, earning $82.3 billion compared with $79 billion posted by Intel, retaking the spot after three years.

Samsung is expected to conduct a groundbreaking ceremony for a $17 billion chip fabrication plant in Taylor, Texas, this month. The company said it expected the facility to go fully operational in the second half of 2024.

Samsung Electronics said last month it will invest $355 billion in semiconductor and biopharmaceuticals for the next five years, as South Korea’s largest company seeks to further expand its business in future growth areas.

Samsung also expected the investment to nurture a fabless ecosystem in South Korea, which in turn will drive growth in electric cars, smart factories, robotics and smart home appliances.