Samsung loses billions on chips as overall profits decline 95 percent
Samsung’s memory chip business just had a terrible quarter, as falling demand and high inventories contributed to a 4.58 trillion won (around $3.4 billion) loss from the division, Bloomberg reports. The loss at the unit, which CNBC reports is typically its largest profit driver, contributed to Samsung’s quarterly operating profit plunging 95 percent in the quarter to 640 billion won (roughly $478 million).
A few different factors contributed to Samsung’s losses at its memory chip division. Smartphone and PC makers stockpiled chips during the pandemic as a hedge against supply issues as demand boomed, but have since been left with large inventory excesses as consumer demand has dropped off amidst high inflation and broader global economic...