(Tiper Stock Exchange) – Samsung Electronicsa South Korean multinational electronics company, said it will carry out a “significant” cut in production of chips after registering a worse-than-expected drop in quarterly operating profitwhile a sharp downturn persists in the global semiconductor market.
Samsung communicated a operational profit of 600 billion Korean won (about 417 million euros) in first quarter of 2023from 14.12 trillion won in the same period a year earlier and 4.31 trillion won in the last quarter of 2022. This is the lowest profit for any quarter in 14 years.
The sales instead, they settled between 62 and 64 trillion won in the same period (vs 77.78 in the first quarter of 2022 and 70.46 in the fourth quarter of 2022).
“Memory demand has dropped dramatically due to the macroeconomic situation and the slowdown of customer buying sentimentas many customers continue to adjust their inventories for financial purposes,” the statement read.
“We are reducing the production of memory chips of a significant level, especially that of products with assured supply,” he added, referring to those with sufficient stocks.