Samsung reduces its chip production as its profits decline
As the tech giant reported another quarter of declining profit, it is reducing the production of its computer memory chips to reduce inventory.
The company is managing its inventory, claiming that it has enough chips to meet changing demand.
For the three months ending in March, the company anticipated an operating profit of $455 million.
That is a profit loss of 96% compared to the previous year.
Sales fell 19% during the quarter, to $47.7 billion.
This month, Samsung will publish the final results.
Memory chip demand has decreased as a result of consumer spending on technology products falling due to a weak global economy.
The impact that Russia’s war on Ukraine and high inflation had had on markets was partially to blame for Samsung’s nearly 70% drop in profit for the October-December quarter.
“While we have lowered our short-term production plans, we expect solid demand for the mid-to long-term, so we will continue to invest in infrastructure to secure essential levels in clean room capacities and expand investment in research and development to strengthen our technology leadership,” Samsung said.
In order to construct the most extensive semiconductor manufacturing base in the world, Samsung will invest $227 billion over the next 20 years near Seoul, South Korea.