The South Korean company -- one of the world's largest makers of memory chips and smartphones -- said in a statement that operating profit fell to 640 billion won -- down 95 percent from a year earlier.
Samsung also blamed weakening demand for memory chips -- which usually generate about half of its profits -- and falling chip prices. Demand for memory was"expected to gradually recover" in the second half of 2023, it added,"amid projections that customer inventory levels will have declined." Demand swelled during the pandemic as consumers bought new computers and smartphones during lockdowns, prompting chip makers to ramp up production.
South Korean chip maker SK Hynix and Micron Technology of the United States have also reduced production.
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