Samsung to cut chip production as profits plunge by 96% in 1st quarter

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https://www.theguardian.com/technology/2023/apr/07/samsung-to-cut-chip-production-as-profits-plunge

The world’s biggest memory chip maker said it would make a “meaningful” cut to chip output after sales dropped sharply and it flagged a 96% drop in first-quarter profits, worse than expected. The fellow South Korean firm SK Hynix and Micron Technology of the US have also reduced production. “Samsung talking about production cuts is evidence of how bad the current slump really is,” said Greg Roh, the head of research at Hyundai Motor Securities. Smartphone and personal computer makers ramped up purchases of chips during the Covid-19 pandemic, when demand for consumer electronics soared as people were stuck at home during lockdowns. This led to a global chip shortage. However, demand has waned as consumers cut back on bigger purchases amid the cost of living crisis, with food and energy bills soaring.

Samsung to cut chip production as profits plunge by 96%

Sales fall at world’s biggest memory chip maker amid decline in global demand for semiconductors

www.theguardian.com

 

[silversurfer]

Samsung warned the world earlier this month that its Q1 2023 earnings report was going to be bad. Now the report is here, and oh boy, is it a disaster. Profits are officially down a stunning 95 percent for Q1 2023. The company made 14.12 trillion Korean won in profit ($10.7 billion) for Q1 2022, and this year it's just 640 billion won ($478.55 million). These are Samsung's lowest profits since 2009, basically back when the modern smartphone market was still materializing.

Samsung is well-known for its smartphones, TVs, and appliances, but most of the company's business is components like chips and displays. In 2022 the memory division accounted for 55 percent of profits, mobile was 22 percent, and displays were 11 percent. That company-leading memory division is exactly what tanked this quarter, posting a loss of 4.58 trillion Korean won ($3.4 billion), compared to a profit of 8.45 trillion won ($6.3 billion) this quarter last year.

Samsung makes its stunning 95 percent profit drop official for Q1 2023

A glut of memory chips leaves Samsung with its lowest profits since 2009.

arstechnica.com

Samsung Electronics Announces First Quarter 2023 Results

Quarterly revenue of KRW 63.75 trillion, operating profit at KRW 0.64 trillion Global demand projected to rebound as market conditions expected to recover in 2H

news.samsung.com