Shulou(Shulou.com)11/24 Report--

January 31 news, according to foreign media reports, although profits fell sharply in the fourth quarter of 2022, Samsung reiterated that it will not cut chip production.

Today, Samsung Electronics announced its results for the fourth quarter of 2022. The company reported revenue of 70.46 trillion won (currently about 387.53 billion yuan) in the quarter, down 8 per cent from a year earlier. Of this total, revenue from the semiconductor business was 20.07 trillion won (currently about 110.385 billion yuan) and operating profit was 270 billion won (currently about 1.485 billion yuan), down 96.9 percent from the same period last year.

In the fourth quarter of 2022, the company's operating profit was 4.31 trillion won (currently about 23.705 billion yuan), the lowest quarterly profit in eight years, plummeting 69% compared with the same period last year. This is due to poor sales of memory chips and the continued slowdown in the smartphone market.

It is reported that the chip division is still one of Samsung's most profitable businesses. Samsung's chip division saw a similar decline in profits as memory chip prices fell by double-digit percentages in 2022.

Profits in its chip division plunged more than 90 per cent to 270 billion won (currently about 1.485 billion yuan) in the fourth quarter of 2022 as customers continued to process large amounts of inventory, the company said.

The company also said that despite a sharp drop in profits in its chip division, it would not cut capital expenditure, including investment in plant and equipment, as it expected demand to recover in the medium to long term.

Samsung's competitors have cut back on investment because of falling demand and a glut of chips. However, Samsung said in October 2022 that it had no intention of cutting chip production, contrary to the industry-wide trend of cutting production to meet medium-and long-term demand.

At the end of December 2022, foreign media reported that Samsung Electronics plans to increase chip production capacity at its largest semiconductor plant next year, although the economy is expected to slow.

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