Samsung Electronics Co. posted a record $3.4 billion loss at its pivotal memory chip division.
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in predicting some relief from a broad tech recession that’s hit the world’s biggest names from Apple Inc. to Intel Corp.
Samsung has been at the heart of a slump gripping the $160 billion global memory industry.
The company, which supplies chips to Apple while making the iPhone’s closest competitor, reported net income of 1.4 trillion won ($1.05 billion).
Its semiconductor division, typically its largest, posted an unprecedented loss of 4.58 trillion won.
“The memory chip industry has likely passed the worst of weak demand” in the first quarter, Eli Lee, head of investment strategy at Bank of Singapore.
Samsung plans to maintain 2023 investment in memory chips at about last year’s level, because it’s seeking to safeguard its longer-term competitiveness.
Spot memory prices rebounded for the first time in 13 months shortly after Samsung’s announcement.
Samsung posted its slimmest operating profit since 2009 just a few weeks ago.
“In the second half, the smartphone market is expected to increase in both volume and value amid signs of a global economic recovery,” it said in its statement.
The mobile division posted a 3.9 trillion won operating profit in the quarter.