Samsung Q3 profit set to slump 80% as chip losses persist

SEOUL - Samsung Electronics' third-quarter profit is expected to drop 80% from a year earlier as the effects of an ongoing global chip glut drive losses in what is normally the South Korean tech giant's cash cow business.

Analysts said Samsung's cuts to chip production also hurt economies of scale, lifting the costs of making chips. Smartphone and personal computer makers have been refraining from buying new memory chips, opting to use up their existing inventory for months on concerns of an economic downturn. Strong demand for memory chips used in artificial intelligence such as high bandwidth memory remains a bright spot, but Samsung is behind rival SK Hynix in developing such chips and securing clients like AI-chip leader Nvidia.

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US Lets Samsung, SK Hynix Expand Giant Chip Plants in China - BNN BloombergThe Biden administration will allow Samsung Electronics Co. and SK Hynix Inc. to acquire the equipment they need to sustain and expand their giant chipmaking operations in China, South Korea’s government said, a victory for the world’s two biggest memory makers.
Source: BNNBloomberg - 🏆 83. / 50 Read more »