Wednesday, 1 February, 2023

Samsung warns of 32% hit to profits on chip slump

Technology giant Samsung has warned of a 32% slide in its profits as demand for electronic devices and the memory chips that power them shrinks due to the global economic slowdown.

The South Korean company estimates its quarterly operating profit was about 10.8tn won ($7.6bn; £6.9bn).

On Thursday, US chip maker Advanced Micro Devices (AMD) also said it was hit by a fall in demand for computers.

It comes as people cut back on purchases as the cost of living rises.

Samsung's profits from its microprocessor making business suffered as the global price of memory chips plunged due to weakening demand for consumer electronics.

The estimates, which are for the three months to the end of September, mark Samsung's first year-on-year decline in quarterly profits in almost three years.

Samsung is due to release its earnings on 27 October.