reported its weakest quarterly profit in eight years on Tuesday as the weakening global economy hit PC and smartphone demand in the fourth quarter.
The South Korean chip maker (ticker: 005930.Korea) said it expects demand to begin recovering in the second half of 2023. Despite the slowdown, and unlike its peers,
did not cut capital expenditure plans for 2023.
(WDC), and Kioxia Holdings have all revealed plans to cut their spending on capacity expansion or to lower their output
Samsung’s operating profit fell 69% to 4.31 trillion won ($3.5 billion) in the last three months of 2022 from a year earlier, while revenue fell 8% to 70.5 trillion won. The stock, which is up 10% so far in 2023, fell 3.6% Tuesday.
“The business environment deteriorated significantly in the fourth quarter due to weak demand amid a global economic slowdown,” the company said in a statement. Earnings at Samsung’s memory-chip business decreased sharply, it added, citing falling prices and customers adjusting inventory.
It’s another bad sign for U.S. chip maker
Advanced Micro Devices
(AMD), which reports after the close Tuesday. Wall Street expects weak PC demand to hit AMD’s earnings, particularly after its rival Intel’s disappointing fourth-quarter results last week.
AMD stock, which fell close to 4% Monday, pointed 1.2% lower Tuesday.
Write to Callum Keown at email@example.com