Samsung to Cut Chip Production

Samsung to Cut , Chip Production.

CNN reports that after experiencing a 96% drop in quarterly operating profit, Samsung Electronics announced a "meaningful" cut to chip production on April 7.

CNN reports that after experiencing a 96% drop in quarterly operating profit, Samsung Electronics announced a "meaningful" cut to chip production on April 7.

Memory demand dropped sharply … due to the macroeconomic situation and slowing customer purchasing sentiment, as many customers continue to adjust their inventories for financial purposes, Samsung, via statement.

We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured, Samsung, via statement.

The size of the cut in chip production has yet to be disclosed.

Samsung's operating profit dropped from about $14.12 trillion last year to $455.5 million between January and March of this year.

That's the lowest quarterly profit for the company in 14 years.

CNN reports that rising inflation has slowed consumer demand for tech devices.

As a result, new chips aren't being bought by tech companies.

The chip division as a whole sustained a quarterly loss of over $3.03 billion, analysts estimate.