The crisis in the global chip market is causing Samsung’s second-quarter profit to fall sharply. An end to the problems in the chip market is not expected until 2024.
In its preliminary financial results for the second quarter of 2023, Samsung indicates that profits have hit a low point. It is likely the lowest profit in 14 years. Profits fell 96 percent last quarter compared to the second quarter in 2022.
Overall, Samsung posted sales of 64 trillion South Korean won (45 billion euros) in the second quarter of 2023, down from 77.2 trillion won a year earlier. Profit came to 0.6 trillion won last quarter, down from 14.1 trillion won a year ago.
Crisis in global chip market
According to the tech group, the decline is mainly due to the crisis in the global chip market. Prices of memory chips in particular are meager, so the value of its stock has also fallen. Samsung did reduce its stock, but this has not yet helped improve the situation.
According to Reuters, the tech giant does not see any improvement in this situation for the rest of the year. Paps from 2024, the global (memory) chip market would pick up. Partly due to the growing demand for AI solutions.
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