The first-quarter drop is the third consecutive margin squeeze for Samsung, which saw a 70 per cent fall in operating profits in the fourth quarter on-year.Korean chipmakers - led by Samsung - enjoyed record profits in recent years as prices for their products soared, but the global economic slowdown has dealt a blow to memory sales.
But demand quickly diminished as lockdowns lifted and weakened further in the face of soaring inflation and rising interest rates. South Korean chip maker SK Hynix and Micron Technology of the United States have also reduced production. "Even if the pace of recovery for demand remains slow, the semiconductor industry is highly likely to recover in the second half if cooperation among the chip makers on production cuts goes well," it added.
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