Samsung said that they are going to cut production of memory chips after profits decreased to an all time low. Sales fell sharply for the chip making giant, decreasing the profit by 96% amid decrease in the demand.
“Meaningful” Cut To Production
Electronic sales skyrocketed in the covid when the whole world was stuck in their homes because of lockdowns. Amid sharp decline in the global demand and all-time slow economy, the chip making giant said it’ll make meaningful cuts to its output to mitigate losses. The South Korean tech giant said that they are significantly reducing the production of memory chips, particularly those products that have a secured supply.
Lowest Quarterly Profit in 14 Years
According to reports, Samsung’s operating profit for the first quarter of this year is expected to have dropped to 600 billion won from 14.12 trillion won a year ago, marking the lowest quarterly profit in 14 years. The company will reveal the exact figures later in the month.