Samsung sees DRAM oversupply if PC market slows more

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TAIPEI, Sept 7 | Tue Sep 7, 2010 3:23am EDT

TAIPEI, Sept 7 (Reuters) - South Korea's Samsung Electronics (005930.KS), the world's largest memory chipmaker, foresees an oversupply of dynamic random access memory (DRAM) chips in the fourth quarter of this year or the first quarter of next if the PC market continues to slow.

Kwon Oh-hyun, head of Samsung's chip business, made the remarks at a media conference on Tuesday at the company's annual mobile solution forum in Taipei.

In late July, Samsung warned of weaker margins and profit growth after posting record quarterly earnings, as prices of chips and flat screens drop and smartphone competition grows. [ID:nTOE66T00D]

Samsung has previously said prices for its bread-and-butter memory chips business would fall in the second half on concerns that China's tightening policy and the European debt crisis could hurt sales of computers and other consumer goods. (US$1=T$32) (Reporting by Baker Li; Editing by Jonathan Standing)

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