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"We'll have to wait and see how things will go
next year, but there definitely will not be any game of
chicken," Kwon Oh-hyun told reporters on the sidelines of an
industry event. A Samsung spokeswoman confirmed his remarks to
Reuters.
Memory chip makers have reported strong profits this year thanks
to better-than-expected demand for personal computers and
servers as well as careful capacity management. Analysts believe
industry conditions will remain favorable in 2015, forecasting
similar market dynamics.
Samsung's plan to invest 15.6 trillion won ($14.67 billion) in a
new South Korea chip plant stoked concerns about the industry's
profit outlook. Some investors worry that the firm could ramp up
supply and undercut prices to squeeze rivals like SK Hynix Inc
and Micron Technology Inc.
Analysts have downplayed the likelihood of such aggressive
behavior, noting that production from the facility will not
begin until 2017. They say margins in the memory business are
important to Samsung, given the mobile division's falling
smartphone profits.
(1 US dollar = 1,063.3000 Korean won)
(Reporting by Se Young Lee; Editing by Stephen Coates)
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