Samsung to Reduce Memory Chip Production

Samsung Electronics, South Korea’s biggest company, says preliminary results for the March quarter on Friday its operating profit declined nearly 96 per cent from 2022 due to a sharp drop in chip demand.

According to its earnings guidance, Samsung estimated its January-March operating profit at $454.9 million, sharply down from 14.12 trillion won a year ago.

Sales likely fell 19 per cent to 63 trillion won from 77.78 trillion won a year earlier, the company said in a regulatory filing. 

As a result, it is adjusting chip output to a “meaningful level” to resolve the inventory glut and falling memory chip prices, in an about-face of its previous position that there would be no “artificial” production reduction.