Samsung to cut chip production after profits plunge 96%

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Samsung Electronics will cut memory chip production after estimating a 96% drop in its quarterly operating profit.

The chip-making giant said sales had dropped sharply due to a slow global economy and less demand after Covid.

Samsung said preliminary numbers showed operating profits fell 600 billion won (£366m) in January-March, from 14 trillion won the previous year.

The firm’s shares rose more than 4% despite the decision to slow chip-making.

“We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured,” the South Korean tech giant said.