Samsung to significantly reduce chip production due to decreased demand

The numbers are broadly in line with preliminary results from earlier this month, when Samsung said its operating profit fell 96 percent to 600 billion won (CZK 9.8 billion), hitting a 14-year low. Samsung has therefore announced that it will significantly reduce the production of chips.

With consumer demand for technology equipment weak due to rising inflation, semiconductor buyers, including data center operators and smartphone and PC makers, are cutting back on new chip purchases and using up inventories, Reuters reported at the time.