Samsung Electronics has reported a fourth-quarter operating profit estimate of 6.5 trillion won ($4.47 billion).
Despite being 131% higher than the previous year, the profit of Samsung Electronics was down 29% from the third quarter.
The shortfall was attributed to slower demand for conventional memory chips, increased R&D costs, and investments in advanced chip processes.
Earnings of Samsung Electronics also declined in its non-memory chip segment due to lower factory utilization and rising development expenses, as well as in its devices business, impacted by fading mobile phone sales and growing competition.
Samsung’s delays in supplying high-end chips to Nvidia have further strained its performance, despite earlier assurances of progress.
Nvidia CEO Jensen Huang acknowledged Samsung’s efforts to engineer new high-bandwidth memory chips, emphasizing the urgency for results, Reuters news report said.
Samsung has not provided recent updates on this development, leaving analysts concerned about its ability to catch up with rivals like SK Hynix.
Baburajan Kizhakedath
