Samsung Electronics has lowered its fourth-quarter production plan for low- and mid-range smartphones, citing rising memory chip prices and tighter supply of glass fiber used in PCB raw material CCL. According to ChainCatcher, Japanese supplier Nitto Boseki is shifting more capacity toward higher-margin T-glass for AI semiconductors, reducing E-glass output for smartphone PCBs and pushing up prices.

The report said Samsung reduced orders for related components after higher memory costs lifted manufacturing expenses. Low-margin Galaxy A series models are difficult to scale up, and this year’s base models in the low- and mid-range segment are priced more than 100,000 won higher than the previous generation. Samsung’s fourth-quarter component order outlook shared with partners implies full-year smartphone shipments of just over 230 million units, below the 240 million units expected by the parts industry and down 20% to 30% from before the Mid-Autumn holiday break.

Samsung had projected monthly fourth-quarter output in mid-September at 14.3 million units in October, 9.5 million in November, and 7.6 million in December, or 31.4 million units in total. That was later cut in early October to 9.9 million in October, 7.6 million in November, and 6.7 million in December, totaling 24.2 million units, a 23% reduction. While low-end production was trimmed, plans for flagship shipments such as the Galaxy S27 remain elevated for early next year, and foldable phone shipments are also expected to rise. Samsung’s MX and network division posted an operating loss of 735 billion won in the second quarter, while securities firms expect a full-year loss of 400 billion won.