The first loss for the semiconductor division of Samsung in 14 years was reported during the first quarter with a loss of 4.58 trillion won.
The South Korean IT firm reported 63.75 trillion won in income and 640 billion won in operational earnings on Thursday, down 18.75% and 95.47% from the prior year, respectively.
Consumer demand has slowed down, according to Samsung, as a result of market uncertainty and global economic uncertainty.
13.73 trillion won in sales and 4.58 trillion won in operational profits were generated by the company’s chip segment.
While operating profit decreased from the 8.45 trillion won in operational earnings recorded last year, revenue was cut in half from the previous year.
Samsung claimed that while there was a low demand for DRAM in servers, there was a high demand for NAND due to a strong demand for greater-capacity products.
During the third quarter, interest in chips from TVs and smartphones decreased at Samsung System SLI, the company’s logic chip division.
According to Samsung, the second quarter is projected to see a continuation of the sluggish chip demand.
However, an improvement was anticipated for the second half of the year, and Samsung intended to concentrate on premium products like DDR5 and LPDDR5x. According to the business, it would also concentrate on 2-nanometer gate-all-around technology for foundries.
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