Samsung and Hynix Semiconductor to Cut Chip Production

Sam Robbins, owner and CEO of PC solutions, arrived at the office and glanced at the front page of The Wall Street Journal waiting on his desk.

One of the articles contained statements from executives of two South Korea's largest semiconductor manufacturers Samsung Electronics Company and Hynix semiconductor, indicating that they would suspend all their memory chip production for one week. The article went on to say that another large semiconductor manufacturer was likely to follow the suit. Collectively, these three chip manufacturers produce about 30 percent of the world basic semiconductor chips.

PC solutions is a small but growing company that assembles PCs and sells them in the highly competitive market for "clones". PC solutions experienced 100 percent growth last year and is in the process of interviewing recent graduates in an attempt to double its workforce.

After reading the article, Sam picked up the phone and called a few of his business contacts to verify himself the information contained in the journal. Satisfied that the information was correct, he called the director personnel, Jane Remak.

What do you think Sam and Jane discussed? Explain your answer.