Samsung lost $2 billion in two months in semiconductor manufacturing, a business that has been profitable since 2009

The South Korean manufacturer Samsung did not have the best start to 2023. The company announced Galaxy smartphones

S23, which sells better than the Galaxy S22, andalso presented new 4K and 8K Neo QLED TVs. However, the division, which produces semiconductor products, lost $2 billion in January and February.

What is known

The key reason is the drop in demand formemory and the global economic downturn in general. If the situation does not change in March, the Suwon-based company could have an operating loss of $3 billion in the first quarter of 2023. Samsung's semiconductor business last lost money in 2008.

The company ran into problems at the end2022. Semiconductors generated $17.5 billion of $33 billion in operating income in 12 months. But there is an important nuance here. For the first half of 2022, operating income was $13.5 billion. In the third quarter, it fell to $3.8 billion, and in the fourth to $0.2 billion, falling 97% year-on-year.