South Korea-based technology giant Samsung, which we know with its products from many different categories, shared its preliminary earnings report for the first quarter of 2023. Accordingly, the company the lowest profit since the financial crisis in 2009 reported.

According to the report, Samsung Electronics’ operating income in the first quarter ended March was up from the previous year. With a drop of more than 95% It dropped to 600 billion won ($450 million). It also revealed that the number fell short of the company’s estimate of 1.4 trillion won ($1 billion 64 million).

Memory chip production needs to be reduced after declining profits

Samsung, the world’s largest manufacturer of memory chips, stated that it would reduce chip production after this sharp drop of approximately 96%. In its statement, the company “memory production to a meaningful level” He said he would download it. He also stated that he had made the decision to optimize to secure sufficient memory chip volume for future demands, and that he would continue to invest in infrastructure and R&D to strengthen its leadership in the industry.

The move to cut production means the tech giant will build five new memory factories in South Korea last month, with some 20 years to go. $230 billion It came after he announced he was going to publish it.

Memory prices have fallen recently due to weak demand for a wide variety of electronics, from smartphones to PCs. That’s why Samsung’s move to cut back on chip production caused prices in the industry to plummet. end the oversupply It can be said that it is an important step ahead

The South Korean company also added that its profits have suffered so much from the global economic downturn, excess memory chips and low demand. The company will publish its full financial statements, including net income and earnings, later this month.