Samsung Electronics, the world’s largest manufacturer of memory chips and smartphones, announced a steep decline in operating profit in the fourth quarter of 2022. The South Korean tech giant saw a drop of 69% to 4.3 trillion won ($3.49 billion), the lowest level in eight years, as the global economic slowdown impacted consumer demand for electronics and semiconductors.
The company reported a decrease in fourth quarter sales by 8% to 70.46 trillion won and a drop in full-year operating profit by 16% to 43.37 trillion won, with full-year sales reaching 302.23 trillion won.
Samsung attributed the weak results to a significant deterioration in business environment in the fourth quarter, as demand weakened during the global economic slowdown. The company’s chip business, which accounts for 56% of overall profit, was hit particularly hard as a result of reduced spending by semiconductor buyers, caused by rising backlogs and oversupply leading to a decline in chip prices.