Samsung Cuts Back On Semiconductor Spending as Profits Shrink

Falling sales of chips, phones and displays hurt bottom line
Samsung cuts more capex than it predicted months earlier

Bloomberg Intelligence’s Anthea Lai explains why Samsung’s fourth-quarter results missed market expectations. (Source: Bloomberg)

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Sam Kim (News)

January 30, 2019 at 11:33 PM UTC

Updated on

January 31, 2019 at 4:19 AM UTC

This article is for subscribers only.

Samsung Electronics Co. is reducing spending this year to focus on the profitability of its memory chips after posting its biggest net-income decline in two years.

Net income fell to 8.3 trillion won ($7.5 billion) in the three months ended December, the Suwon, South Korea-based company said Thursday in a filing. That compares with the 10.2 trillion won average of estimates compiled by Bloomberg.