Samsung experiences 78% profit slump in Q3

Samsung Electronics Co. has experienced a rollercoaster of highs and lows. The story begins at a low point, with Samsung's quarterly profit plummeting by an astonishing 78% which is a considerable blow to the chip industry.

Here's a quick rundown:

• Market Low: The memory chip market has seen better days, with industry allies like SK Hynix Inc., and Micron Technology Inc., also feeling the heat. The oversupply and diminishing demand have prompted tech giants to minimize chip orders.

• Number's Game: Samsung's operating income dwindled to approximately 2.4T won ($1.8B), signifying a 13% dip in sales. Despite the daunting figures, this was an improvement upon the previous quarter's 95% plunge.

• Shares on the Rise: On the sunny side, Samsung's shares saw a 3.3% rise in Seoul, exceeding market expectations.

• US Affairs: Recent developments have seen Samsung and Hynix obtain US approval to broaden chipmaking operations in China, the world's largest chip market.

• AI Venture: In response to the AI boom ignited by OpenAI’s ChatGPT debut, Samsung is preparing for a tech-spending spree to develop AI-training tools. It aims to double its high-bandwidth memory creation by 2024.

• Strategy Shift: As a strategic move, both Samsung and Hynix are curbing production of NAND chips used in PCs and phones, showing signs of market recovery.

• Other Updates: Samsung continues to innovate in the foldable phone market, recently launching its fifth-generation foldable phone.

Despite the challenging climate, Samsung anticipates a sales recovery in the second half of the year. Concurrently, it strives to keep pace in the foundry business, where it currently trails Taiwan Semiconductor Manufacturing Co.