Samsung’s Profits Plunge Over 95% as Demand for Chips Tanks

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Samsung’s Profits Plunge Over 95% as Demand for Chips Tanks

Samsung Electronics, the world’s largest chipmaker, reported its worst quarterly profits in 14 years on Thursday, as demand for its products slumped.

The company’s operating profit fell to 640 billion won ($478.6 million) in the first quarter of 2023, down 95% from a year earlier. Revenue dropped 18% to 63.75 trillion won.

The sharp decline in profits was driven by a number of factors, including weak demand for memory chips, which are used in smartphones, computers, and other devices.

The global chip market has been under pressure in recent months, as demand has slowed amid rising inflation and the war in Ukraine.

In addition, Samsung’s chip business has been hurt by increased competition from Chinese rivals.

Looking ahead, Samsung said it expects a gradual recovery in the chip market in the second half of the year. However, the company said it will take some time for demand to return to normal levels.

In the meantime, Samsung is taking steps to reduce costs and improve its profitability. The company said it will also focus on developing new technologies, such as next-generation memory chips.

The decline in Samsung’s profits is a sign of the challenges facing the global chip industry. The market is expected to remain volatile in the coming months, as the global economy faces a number of headwinds.

Samsung's Profits Plunge Over 95% Due To Low Demand

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