Samsung to Reduce Chip Production After Profit Drop

South Korea-based technology giant Samsung, which we know with its products from many different categories, shared its preliminary earnings report for the first quarter of 2023. Accordingly, the company its lowest profit since the financial crisis in 2009 reported.

According to the report, Samsung Electronics’ operating profit in the first quarter ended March compared to the previous year. With a drop of over 95% It fell to 600 billion won ($450 million). It also revealed that the number fell short of the company’s 1.4 trillion won ($1 billion 64 million) estimate.

Memory chip production to be reduced after falling profits

Samsung, the world’s largest memory chip manufacturer, stated that it will decrease in chip production after this serious decrease of approximately 96%. In its statement, the company “memory production to a meaningful level” He said he would download it. He also stated that he made the decision to optimize to secure sufficient memory chip volume for future demands, and that he would continue to invest in infrastructure and R&D to strengthen his leadership in the industry.

The step to curb production means the tech giant is set to build five new memory factories in South Korea last month, with about 20 years to come. 230 billion dollars It came after he announced that he was going to spend it.

Memory prices have fallen recently due to sluggish demand for a wide range of electronics, from smartphones to PCs. That’s why Samsung’s move to reduce chip production is what caused the prices to decline in the industry. end the oversupply It can be said to be an important step for

The South Korean company also added that its profits have suffered so much due to the global economic downturn, excess memory chips and low demand. The company will release its full financial statement, including net income and earnings, later this month.