Samsung cuts memory chip production as it sees worst quarterly profit since 2009

Samsung Electronics plans to scale back reminiscence chip manufacturing within the first quarter of 2023 as working revenue is predicted to fall by about 96% year-on-year. This would be the lowest revenue introduced by the South Korean tech large because the first quarter of 2009.

The world’s largest reminiscence chip maker stated in its preliminary earnings report Friday that the worldwide macroeconomic slowdown, reminiscence chip surplus and sluggish demand damage its earnings.

“Samsung is adjusting to scale back reminiscence manufacturing to a significant stage,” he stated. Samsung claims to have optimized the road operations to safe sufficient reminiscence chip quantity for future demand. The expertise firm added that it’ll proceed to spend money on infrastructure and analysis and growth to strengthen its expertise management within the business.

Samsung’s quarterly revenue for the January-March interval is estimated to be 600 billion received ($450 million), down practically 95.8 % from 14.12 trillion received within the first quarter of 2022. Whereas the corporate will announce its outcomes later this month, analysts count on the corporate to report quarterly revenue of 1.4 trillion received for the primary quarter, based on knowledge compiled by Bloomberg. The corporate stated its income can also be anticipated to fall to 63 trillion received within the first quarter, from 77.78 trillion received a 12 months in the past.

Samsung earlier this 12 months aforementioned Hoping to revive the reminiscence chip market within the second quarter of this 12 months, it will not lower reminiscence chip funding regardless of declining demand. On the identical time, related Micron Technology, KioxiaAnd SK Hynixlower off reminiscence chip manufacturing to satisfy the surplus provide.

Samsung has the world’s largest world market share 40.7% And 31.4% In DRAM reminiscence chips and NAND flash reminiscence within the third quarter of 2022. Within the first quarter of this 12 months, the value of DRAM and NAND fell by about 20% and 15%. a recent report by TrendFroce.

Samsung stated final month that it’ll spend about $230 billion (300 trillion received) over the subsequent twenty years to construct 5 new reminiscence and manufacturing facility factories in South Korea; Yongin is on the outskirts of Seoul.

The corporate will launch a full monetary assertion on the finish of April, which incorporates web earnings and earnings by business.