Samsung to cut chip production after profits plunge 96%

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Samsung to cut chip production after profits plunge 96%
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The world's largest memory chip maker posts its worst profit since the 2009 financial crisis.

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

Demand for memory chips ramped up during Covid-induced lockdowns as consumers bought new electronics to use at home. "This led to a strong 'bullwhip' effect for semiconductor makers further back in the supply chain, where sky-high demand during the chip shortage suddenly dried up", he added.

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