{"id":594570,"date":"2023-01-06T05:49:44","date_gmt":"2023-01-06T11:49:44","guid":{"rendered":"https:\/\/news.sellorbuyhomefast.com\/index.php\/2023\/01\/06\/samsungs-quarterly-profit-hits-8-year-low-amid-weak-demand-for-memory-chips-smartphones\/"},"modified":"2023-01-06T05:49:44","modified_gmt":"2023-01-06T11:49:44","slug":"samsungs-quarterly-profit-hits-8-year-low-amid-weak-demand-for-memory-chips-smartphones","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2023\/01\/06\/samsungs-quarterly-profit-hits-8-year-low-amid-weak-demand-for-memory-chips-smartphones\/","title":{"rendered":"Samsung\u2019s quarterly profit hits 8-year low amid weak demand for memory chips, smartphones"},"content":{"rendered":"
\n

Samsung Electronics\u2019 operating profit plummeted 69% to $3.4 billion in the quarter that ended in December to an eight-year low, according to its preliminary estimates, as the global demand for memory chips and smartphones wanes due to high inflation and slowing economy.<\/p>\n

\u201cAmid continued external uncertainties, including a potential global economic downturn, overall earnings decreased sharply quarter on quarter as we saw a significant drop in the memory business results due to lackluster demand and weaker sales of smartphones,\u201d the company said in a statement.<\/p>\n

The memory chipmaker and smartphone producer saw sales of 70 trillion won ($55 billion) in the quarter, down roughly 8.6% over the same period a year ago.<\/p>\n

The sharp drop in demand for memory chips, including DRAM and NAND, which are used in gadgets and data centers, has also pushed manufacturers and vendors to lower their price,\u00a0according to TrendForce<\/a>.<\/p>\n

\u201cFor the memory business, the decline in the fourth quarter demand was greater than expected as customers adjusted inventories in their effort to further tighten finances by concerns over deteriorating consumer sentiment,\u201d the market researcher said. \u201cProfits from the mobile experience business declined as smartphones sales and revenue decreased due to weak demand resulting from prolonged macro issues.\u201d<\/p>\n

Many chip firms, including Micron<\/a> and SK Hynix, plan to slash their capital expenditure and reduce inventories this year. <\/span>Samsung has previously said it doesn\u2019t plan to reduce its capex.<\/p>\n

Geopolitical risk is another concern for semiconductor companies tangled in the tech war between the U.S. and China. Last October, the U.S. rolled out new export controls requiring companies to obtain licenses to sell semiconductor chips for supercomputers and artificial intelligence to Chinese firms.<\/p>\n

Samsung reportedly<\/a> has received a one-year waiver from the US government to continue ordering U.S. chip manufacturing equipment to its fabs in China, such as the NAND flash memory chip plant in Xi\u2019an and a chip-packaging facility in Suzhou. Despite the exemption to maintain the facilities in China, there is always a risk that the U.S. restriction could broadly hit chip firms with customers in China.<\/p>\n

South Korea said earlier this week<\/a> that it plans to increase tax breaks for semiconductor companies in a bid to support Korean chip companies and beef up the country\u2019s critical industry. The move comes after Samsung and SK Hynix paid the highest corporate taxes in 2021 among other top 100 global chip makers, including TSMC, Intel and SMIC.<\/p>\n

The large chip conglomerates in South Korea will benefit from a tax credit of 15%, up from the planned 8%, on investment in manufacturing facilities; small and mid-sized semiconductor companies will get a tax break of as much as 25%, up from 16%, according to South Korean finance ministry.<\/p>\n

The tech giant will announce a full earnings statement, including net profit, for the fourth quarter and provide more details on at the end of this month.<\/p>\n<\/p><\/div>\n

Read More<\/a>
\n Kate Park<\/p>\n","protected":false},"excerpt":{"rendered":"

Samsung Electronics\u2019 operating profit plummeted 69% to $3.4 billion in the quarter that ended in December to an eight-year low, according to its preliminary estimates, as the global demand for memory chips and smartphones wanes due to high inflation and slowing economy. \u201cAmid continued external uncertainties, including a potential global economic downturn, overall earnings decreased<\/p>\n","protected":false},"author":1,"featured_media":594571,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22849,25265,46],"tags":[],"class_list":{"0":"post-594570","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-quarterly","8":"category-samsungs","9":"category-technology"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/594570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=594570"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/594570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/594571"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=594570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=594570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=594570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}