HomeIndustriesSamsung to Scale Down Memory Chip Production Amid Expected Profit Slide

Samsung to Scale Down Memory Chip Production Amid Expected Profit Slide

Samsung Electronics is off to a disappointing start in 2023. The South Korean electronics manufacturer made a decision earlier this week to scale down its memory chip production amid expected profit drops in the first quarter of this year.

According to The Korea Herald, Samsung’s earnings have plummeted as much as 96% compared to the same period in 2022 and will come to around $455 million (600 billion won). It also expects sales of $47.7 billion (63 trillion won), which would mark a 19% drop.

The company believes that the lesser demand for semiconductors had the biggest impact on its profit, which is why it’s shifting its strategy while hoping to clear out its inventory to a degree.

“We’re adjusting to lower memory production to a meaningful level… in addition to optimizing line operations that are already underway,” Samsung said in a statement provided to the media outlet.

While rival chip makers SK Hynix and Micron Technology previously cut their output, Samsung resisted the urge to make the same, hoping to grab a bigger share of the market. However, the market conditions have forced the company to get on board. Analysts now predict that chip prices to get a boost due to cuts.

Delta Struggling With Flight Cancellations Following Tech Outage

Delta Air Lines has continued to struggle with flight cancellations following last week's global cyber outage. This came after a software update by global...

Dolce & Gabbana Seeking New Capital Investment

Dolce & Gabbana CEO Alfonso Dolce confirmed that the fashion house is open to seeking new investors as a means of raising capital. This...

Former Nintendo President Claims Video Game Industry Set to Grow

Former Nintendo of America president and COO Reggie Fils-Aimé insisted that the video games industry is set to grow after suffering years of decline....