Samsung Electronics' operating profit in Q1 2023 plunges 96% year-on-year

By Kim Joo-heon Posted : April 7, 2023, 17:31 Updated : April 11, 2023, 09:35

[Yonhap News Photo]

SEOUL -- Through an earnings report, Samsung Electronics announced its operating profit in the first quarter of 2023 was 60 billion won ($455 million), down 96 percent from the same period a year ago. The conglomerate currently suffering declines in semiconductor prices has experienced operating profit of below one trillion won in 14 years.
Samsung's regulatory filing released on April 7 showed that the company's sales reached 63 trillion won, down 19 percent year-on-year. The company admitted that its performance has deteriorated in the parts industry, adding that demands for IT products continued to be sluggish. 
In the case of memory semiconductors, the company said it has secured supplies capable of withstanding future demand fluctuations "We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured," the conglomerate said in a statement.
Although Samsung has cut its production plan, the company said demands for semiconductors would be still solid in the mid-to-long term. The company aims to increase the investment proportion into semiconductor infrastructure and research and development.
In 2022, SK hynix, the world's second-largest memory chip producer, and U.S.-based memory semiconductor producer Micron Technology also unveiled their schemes to cut production in line with the shrinking semiconductor market.
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