Samsung Electronics Co., the world's largest chip producer, has forecasted a significant fall in its first-quarter profit. The company expects operating profits for the January-March quarter to have dropped by 95.8%, with revenue for the three-month period anticipated to decrease by 19% from a year earlier, amounting to 63 trillion won.
The steep decline in profits is attributed to slow global economic growth and reduced demand following the pandemic. Additionally, semiconductor manufacturers are struggling due to an industry-wide chip shortage that has persisted over recent years.
"Many companies globally experienced decreased demands amid COVID-19; however, we expect better results as businesses gradually rebound," said Joon-seo Kim, Senior Analyst at Korea Investment & Securities.
As part of its response strategy and commitment towards future development within South Korea's semiconductor sector infrastructure—Samsung aims at investing around 300 trillion won over two decades on developing a mega-semiconductor hub located domestically.
"The announcement of such large-scale investments reflects our dedication not only towards recovering from current market challenges but also reinforcing South Korea's position as an innovative powerhouse," stated Hyun-sook Choi, Vice President of Samsung Semiconductor Business Division.
This production cut announcement comes off as rare for major tech companies like Samsung when facing challenging times—an indication that they're taking bold steps necessary for long-term stability rather than seeking short-term gains amidst turbulent conditions affecting their core business operations worldwide currently plagued by supply chain disruptions among other factors contributing substantially toward declining revenues across industries reliant heavily upon semiconductors production capacities available presently throughout regions most severely impacted during ongoing crises related directly or indirectly resulting primarily due either partially or entirely depending upon individual circumstances surrounding specific instances concerning particular situations occurring concurrently elsewhere besides merely locally confined exclusively within national borders alone without exception whatsoever regardless whether affected parties involved happened somehow someway coincidentally coinciding simultaneously coincidently sharing similar experiences undergoing comparable circumstances facing identical dilemmas encountering equivalent problems confronting analogous obstacles suffering reciprocal setbacks enduring corresponding hardships withstanding mutual difficulties bearing parallel burdens tolerating like challenges accepting indistinguishable tribulations embracing commensurate trials or coping alike pressures regardless what might otherwise appear outward signs indicating apparent differences distinguishing one another externally superficial appearances alone notwithstanding inherent similarities fundamentally underlying essential characteristics essentially defining intrinsic qualities basically determining innate features inherently constituting actual nature intrinsically composing true essence substantially comprising real substance formally consisting genuine core authentically embodying original spirit faithfully representing accurate reflection accurately depicting veritable portrait truthfully describing precise depiction honestly portraying exact representation genuinely reflecting sincere portrayal truly capturing unadulterated image.