Samsung decides to cut chip production as profits decline 96%

Samsung Electronics Co. announced on Friday that it has suffered a decline in demand as the quarterly operating profit fall by 96 percent due to the weak global economy, so it decided cut chip production down.

“We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured,” it added, in a reference to those with sufficient inventories,” the statement added.

The South Korean company estimated its operating profit fell to 600 billion won in January-March, from 14.12 trillion won a year earlier, in a short preliminary earnings statement.

It is worth mentioning that the demand for memory chips has jumped dramatically during the coronavirus crisis as customers move to buy new electronic devices for use during the lockdown.