Samsung to Cut Memory Chip Output After Worst Profit Since 2009
- Smartphone division helped mitigate losses in memory chips
- Chip demand cratered in post-Covid era as economic risks soar
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Samsung Electronics Co. said it’s cutting memory chip production after reporting its slimmest profit since the 2009 financial crisis, a significant step toward ending a supply glut that had cratered prices across the industry. Shares rose.
Operating profit at the world’s largest maker of memory chips plunged more than 95% to 600 billion won ($450 million) for the three months ended March, missing the average analyst estimate of 1.4 trillion won. Sales fell 19% to 63 trillion won.