Samsung Electronics plans to cut back memory chip production as its operating profit in the first quarter of 2023 is expected to plummet about 96% from the previous year. This will be the lowest profit posted by the South Korean tech giant since Q1 2009.
The global macroeconomic slowdown, memory chip oversupply and sluggish demand have hurt its profit, the world’s largest memory chip maker said in its preliminary earnings release on Friday.
“Samsung is adjusting to lower its memory production to a meaningful level,” it noted. Samsung claims to optimize line operations to secure enough memory chip volume for future demand. The tech company added that it will continue to invest in infrastructure and research and development to strengthen its tech leadership in the industry.
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