삼성전자 서초사옥. (사진=연합뉴스)

 

[Alpha Biz=(Chicago) Reporter Paul Lee] Samsung Electronics has made it official that it has cut production of memory semiconductors.

Samsung Electronics announced on the 7th that its sales and operating profit were tentatively tallied at 63 trillion won and 600 billion won in the first quarter of this year. 

 

Compared to the first quarter of last year, sales and operating profit plunged 19.0% and 95.8%. The first quarter's operating profit was the first in 14 years since the first quarter of 2009 (590 billion won), far below the market consensus (average estimate by securities firms) of 1.1 trillion won.

Specific performance by business sector was not disclosed on this day.

Samsung Electronics has publicly announced that it has cut semiconductor production. In a tentative performance reference, the company said, "We are lowering memory production to a meaningful level, mainly for products that have secured supply." We did not disclose the specific product and size of the product to be cut. The industry estimates that production will be reduced by 20~30% around DDR4 DRAM.

Semiconductor facilities and research and development (R&D) investment will continue as scheduled.

Shares of Samsung Electronics closed at KRW 65,000, up KRW 2,700 (4.33%) from the previous day, due to growing expectations for a recovery in the business.

 

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