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

CTOnews.com April 27 news, Samsung Electronics today announced the first quarter of 2023 financial results, showing that its chip business suffered significant losses, resulting in its lowest profit level in 14 years.

It is reported that due to the global economic slowdown and the downturn in customer consumption, semiconductor market demand has fallen sharply, causing chip prices to plummet. Chip prices have fallen about 70 percent in the past nine months. Samsung Electronics and other smaller competitors have announced plans to cut chip production in response to the market winter.

Samsung Electronics said its operating profit for the first quarter of 2023 was 640 billion won (CTOnews.com note: currently about 3.315 billion yuan), down 95 percent year-on-year and the lowest level in 14 years. Operating revenue was 63.7 trillion won (currently about 329.966 billion yuan), down 18% year-on-year. Among them, the chip business suffered a loss of 4.58 trillion won (currently about 23.724 billion yuan), compared with a profit of 8.45 trillion won in the same period last year.

In the face of difficulties, Samsung Electronics said it expects the semiconductor market to gradually recover and global demand rebound in the second half of the year, and will focus on high-capacity servers and mobile products. However, analysts believe Samsung Electronics 'profit in the current quarter could be comparable to the first quarter until there is a fundamental recovery in equipment demand.

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