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

vtqhtr413

Level 26
Thread author
Verified
Top Poster
Well-known
Aug 17, 2017
1,453
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.
 

silversurfer

Level 85
Verified
Honorary Member
Top Poster
Content Creator
Malware Hunter
Well-known
Aug 17, 2014
10,057
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.

 

About us

  • MalwareTips is a community-driven platform providing the latest information and resources on malware and cyber threats. Our team of experienced professionals and passionate volunteers work to keep the internet safe and secure. We provide accurate, up-to-date information and strive to build a strong and supportive community dedicated to cybersecurity.

User Menu

Follow us

Follow us on Facebook or Twitter to know first about the latest cybersecurity incidents and malware threats.

Top