www.theverge.com Open in urlscan Pro
151.101.1.91  Public Scan

Form analysis
1 forms found in the DOM

#

<form action="#">
  <div class="duet--cta--newsletter flex w-full flex-col border-t px-12 pt-16 font-polysans-mono text-14 font-light leading-130 -tracking-2 md:text-15 text-blurple border-blurple">
    <div class="mb-10">
      <h2 class="inline font-medium">Verge Deals</h2>
      <p class="inline"> / <span class="duet--article--dangerously-set-cms-markup">Sign up for Verge Deals to get deals on products we've tested sent to your inbox daily.</span></p>
    </div>
    <div>
      <fieldset>
        <div class="mb-4 flex"><label class="sr-only" for="email">Email (required)</label><input name="email" class="mr-8 rounded-sm border px-10 font-polysans text-15 font-light focus:outline-none w-full placeholder:text-blurple bg-white" id="email"
            type="email" placeholder="Enter your email" value=""><button type="submit"
            class="whitespace-nowrap rounded-sm border py-12 px-18 text-12 font-medium uppercase tracking-12 no-underline border-blurple hover:bg-blurple hover:text-white">Sign up</button></div>
      </fieldset>
      <div class="mt-2 font-polysans text-11 leading-110">By submitting your email, you agree to our<!-- --> <a href="https://www.voxmedia.com/legal/terms-of-use" class="underline">Terms</a> and
        <a href="https://www.voxmedia.com/legal/privacy-notice" class="underline">Privacy Notice</a>. <!-- -->This site is protected by reCAPTCHA and the Google<!-- -->
        <a href="https://policies.google.com/privacy" class="underline">Privacy Policy</a> <!-- -->and<!-- --> <a href="https://policies.google.com/terms" class="underline">Terms of Service</a> <!-- -->apply.</div>
    </div>
  </div>
</form>

Text Content

Skip to main content


The VergeThe Verge logo.The Verge homepage
 * The Verge homepageThe VergeThe Verge logo./
 * Tech/
 * Reviews/
 * Science/
 * Entertainment/
 * MoreMenuExpand

The VergeThe Verge logo.
MenuExpand
 * Samsung/
 * Tech


SAMSUNG LOSES BILLIONS ON CHIPS AS OVERALL PROFITS DECLINE 95 PERCENT


SAMSUNG LOSES BILLIONS ON CHIPS AS OVERALL PROFITS DECLINE 95 PERCENT

/


WEAK DEMAND MEANT THE WORLD’S LARGEST MEMORY CHIPMAKER SAW A $3.4 BILLION LOSS
FROM ITS SEMICONDUCTOR BUSINESS. BUT SMARTPHONE PROFITS WERE STRONGER.

By Jon Porter

Apr 27, 2023, 9:33 AM GMT|Comments5 Comments / 5 New


SHARE THIS STORY

 * 
 * 
 * 


Illustration by Alex Castro / The Verge

Samsung’s memory chip business just had a terrible quarter, as falling demand
and high inventories contributed to a 4.58 trillion won (around $3.4 billion)
loss from the division, Bloomberg reports. The loss at the unit, which CNBC
reports is typically its largest profit driver, contributed to Samsung’s
quarterly operating profit plunging 95 percent in the quarter to 640 billion won
(roughly $478 million).

A few different factors contributed to Samsung’s losses at its memory chip
division. Smartphone and PC makers stockpiled chips during the pandemic as a
hedge against supply issues as demand boomed, but have since been left with
large inventory excesses as consumer demand has dropped off amidst high
inflation and broader global economic uncertainties. 

Samsung’s lowest quarterly operating profit since 2009

Samsung hopes that the chip business will start to pick up in the second half of
this year. That’s when existing inventories are expected to have run down, and
new smartphone and PC launches will spur demand. That’s tied to hopes of an
economic recovery in China, which Bloomberg notes is the largest market for PCs
and smartphones worldwide.

Samsung, one of the world’s largest supplier of memory chips, had warned of its
rocky quarter in its preliminary earnings earlier this month. In response, it
plans to cut memory chip production by a “meaningful” amount to help stem a
roughly 70 percent fall in prices over the previous nine months. 

But the company doesn’t plan to cut memory chip investment in the same way. “We
have cut short-term production plans, but as we project solid demand for the
mid-to-long term, we will continue to invest in infrastructure to secure
essential cleanrooms and to expand R&D investment to solidify tech leadership,”
Bloomberg reports Samsung said in a statement. Investment levels in 2023 are
expected to be broadly consistent with last year.

It wasn’t all bad news for the South Korean electronics giant. Profit at its
smartphone division, which saw the launch of the Galaxy S23 lineup last quarter,
rose 3 percent to 3.94 trillion won (around $2.9 billion) versus the previous
year. Revenue, however, was down 2 percent to 30.74 trillion won (around $22.9
billion).

Comments5 Comments / 5 New

Most Popular


 1. MY WEEK WITH DYSON’S ABSURD WEARABLE AIR PURIFIER
    
    --------------------------------------------------------------------------------


 2. LEAK: THE ASUS ROG ALLY WILL COST $699.99 WITH AN AMD Z1 EXTREME
    
    --------------------------------------------------------------------------------


 3. TESLA LAWYERS CLAIM ELON MUSK’S PAST STATEMENTS ABOUT SELF-DRIVING SAFETY
    COULD JUST BE DEEPFAKES
    
    --------------------------------------------------------------------------------


 4. SPACEX’S STARSHIP BLEW UP AFTER LAUNCH — IT ALSO CAUSED ‘CATASTROPHIC’
    DAMAGE ON THE GROUND
    
    --------------------------------------------------------------------------------


 5. GM KILLED THE CHEVY BOLT — AND THE DREAM OF A SMALL, AFFORDABLE EV
    
    --------------------------------------------------------------------------------




VERGE DEALS

/ Sign up for Verge Deals to get deals on products we've tested sent to your
inbox daily.

Email (required)Sign up
By submitting your email, you agree to our Terms and Privacy Notice. This site
is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service
apply.
From our sponsor




Advertiser Content From






MORE FROM THIS STREAM WHO’S MAKING MONEY IN BIG TECH AND BEYOND?


 * PEACOCK ADDED TWO MILLION PAID SUBSCRIBERS LAST QUARTER.
   
   Apr 27, 2023, 12:47 PM GMT


 * “AI” WAS MENTIONED MORE THAN 200 TIMES ON EARNINGS CALLS BY META, MICROSOFT,
   AND ALPHABET THIS WEEK.
   
   Apr 27, 2023, 12:43 PM GMT


 * MARK ZUCKERBERG SAYS META WANTS TO ‘INTRODUCE AI AGENTS TO BILLIONS OF
   PEOPLE’
   
   Apr 26, 2023, 10:41 PM GMT


 * ROKU OS REMAINS THE TOP-SELLING SMART TV PLATFORM IN THE US.
   
   Apr 26, 2023, 9:03 PM GMT

See all 20 stories
RECOMMENDED
 * 
   Urologist Begs Men To “Shrink” Their Prostate With This Tip (Every Morning)
   healthtoday.live
 * 
   Hoe ver komt u met € 500.000 tijdens uw pensioen? Fisher Investments
   Nederland
 * 
   Complete two Master's degrees in one at TUM Heilbronn Campus! TUM Campus
   Heilbronn
 * 
   Nieuwe ontdekking over zonnepanelen op platte daken zorgt voor prijsdoorbraak
   ZonnepaneelExperts
 * 
   Explore L’Oréal’s eco-designed 2022 Annual Report L'Oréal Finance
 * 
   The Best Way to Reduce Nail Fungus Fast! EelHoe



The VergeThe Verge logo.
 * Terms of Use
 * Privacy Notice
 * Cookie Policy
 * Do Not Sell Or Share My Personal Info
 * Licensing FAQ
 * Accessibility
 * Platform Status
 * How We Rate and Review Products

 * Contact
 * Tip Us
 * Community Guidelines
 * About
 * Ethics Statement

The Verge is a vox media network

 * Advertise with us
 * Jobs @ Vox Media

© 2023 Vox Media, LLC. All Rights Reserved

Close popupClose


COOKIES ON THE VERGE

We use cookies and other tracking technologies to improve your browsing
experience on our site, show personalized content and targeted ads, analyze site
traffic, and understand where our audiences come from. To learn more or opt-out,
read our Cookie Policy. Please also read our Privacy Notice and Terms of Use,
which became effective December 20, 2019.


By choosing I Accept, you consent to our use of cookies and other tracking
technologies.

I AcceptI Do Not Accept