Logo
News

Samsung to cut memory chip production amid worst quarterly profit since 2009

Samsung has decided to cut production of memory chips as their operating profit is expected to drop by 96%. It is the worst quarterly profit since 2009.

Samsung to cut memory chip production

Samsung Electronics, the world's largest memory chip maker, is set to cut back on memory chip production. 

Its operating profit in the first quarter of 2023 is expected to drop by around 96% compared to the previous year, marking its worst quarterly profit since 2009. The global macroeconomic slowdown, memory chip oversupply, and sluggish demand have hurt the company's profit, causing it to adjust its memory production to a lower level. 

Despite the setback, Samsung plans to optimize its line operations to secure enough memory chip volume for future demand and continue investing in infrastructure and R&D to strengthen its tech leadership in the industry. Samsung's quarterly profit from January to March is projected to post 600 billion won ($450 million), falling approximately 95.8% from 14.12 trillion won in Q1 2022. 

The company's revenue is also expected to drop to 63 trillion won in the first quarter from 77.78 trillion won a year earlier, the company said. Meanwhile, Samsung's peers, such as Micron Technology, Kioxia, and SK Hynix, have cut their memory chip production to counter oversupply. 

Despite dwindling demand, Samsung had decided not to slash its memory chip investment, hoping to recover the memory chip market in the second quarter of this year. In the third quarter of 2022, Samsung held the largest global market share of 40.7% and 31.4% in DRAM memory chips and NAND flash memory, respectively. 

However, the price of DRAM and NAND dropped approximately 20% and 15% in the first quarter of this year. Last month, Samsung announced that it would spend about $230 billion (300 trillion won) on building five new memory and foundry fabs in South Korea over the next two decades in line with the government's ambitious aim to set up a mega semiconductor hub in Yongin, on the outskirts of Seoul. 

The company will announce a full financial statement at the end of April, including net profit and earnings by sector. As a leading tech company in South Korea, the current setback faced by Samsung in the memory chip production sector has implications for the entire country's economy.

Manish <span>Content Strategist</span>
Written By
Manish Content Strategist

With a mixture of literature, cinema, and photography, Manish is mostly traveling. When he is not, he is probably writing another tech news for you!

Think Your Professional Journey
Deserves A Spot In Our 40 Under 40 Report?

Featured Blogs

News

iOS 14.5 - Everything You Need To Know

4 min read  

iOS 14.5 is out and Apple has made the most of it. The biggest update since the launch of iOS 14, 14.5 puts a lot of features from testing to practice. After a series of beta testings, the update was finally launched on 26th April for iPhones and iPads users around the world.What is new in iOS 1

News

10 Red Flags That Tell If Your Phone Is Hacked

4 min read  

Whenever we see a new application that is either attractive enough or claims to solve a challenge too personal to us, we often forget to check if the app is secure or not. Even though the Play Store and App Store have enough security measures before listing any app on their platform, some applicatio

News

The AI War We Feared is Now a Dangerous Reality

4 min read  

By now, you must have witnessed at least once, the capabilities of Artificial Intelligence to some extent. Whether it is a beautiful image that you generated, or a creative content line that some AI tool provided, we all have already begun living in a world encompassed by the outputs of AI. While we

News

Google Is Now Cutting 100s Of Jobs In Its Recruitment Wing

4 min read  

Even tech giants like Google are not immune to the global economic slowdown. Google has recently announced its latest round of job cuts as part of a broader pullback in hiring over the next several quarters. This time, the workforce facing this reduction will be from its recruitment organization.&nb

Featured Interviews

Interview

Interview With Coyote Jackson, Director of Product Management, PubNub

MobileAppDaily had a word with Coyote Jackson, Director of Product Management, PubNub. We spoke to him about his journey in the global Data Stream Network and real-time infrastructure-as-a-service company. Learn more about him.

MAD Team 4 min read  
Interview

Interview With Laetitia Gazel Anthoine, Founder and CEO, Connecthings

MobileAppDaily had a word with Laetitia Gazel Anthoine, Founder and CEO, Connecthings. We spoke to her about her idea behind Connecthings and thoughts about the company’s services.

MAD Team 4 min read  
Interview

Interview With Gregg Temperley, Founder Of ParcelBroker App

MobileAppDaily had a word with Gregg Temperley, Founder. We spoke to him about his idea behind such an excellent app and his whole journey during the development process.

MAD Team 4 min read  
Interview

Interview With George Deglin, CEO Of OneSignal

MobileAppDaily had a word with George Deglin, the CEO and co-founder of OneSignal, a leading customer messaging and engagement solution, we learn multiple facets related to customer engagement, personalization, and the future of mobile marketing.

MAD Team 4 min read  
MAD Originals
MAD Originals

Cut to the chase content that’s credible, insightful & actionable.

Get the latest mashup of the App Industry Exclusively Inboxed

  • PRODUCTS
  • SERVICES
  • BOTH
Join our expansive network, build connections and expand your brand presence.