Samsung's 2022 Q4 chip department profit plummeted by more than 90%!

Samsung said profit at its chip division plunged more than 90 percent to 270 billion won ($220 million) in the fourth quarter ended December as customers continued to deal with piles of inventory. Revenue was 4.3 trillion won, missing analysts' average estimate of 5.8 trillion won.

Samsung's quarterly profit slumped as demand for semiconductors plummeted as consumers spent less on electronics, according to Bloomberg.

Samsung's fourth-quarter net income was 23.5 trillion won, better than expected, thanks to one-off items from local tax law changes.

Samsung has been grappling with a historic plunge in memory prices as consumers cut back on gadget purchases amid soaring interest rates and inflation. Mounting inventories have forced double-digit price declines, compounding losses.

According to previous media reports, every chip produced by Samsung Electronics and its competitors is losing money. Their collective operating loss this year is expected to hit a record $5 billion. Inventories more than tripled to a record three-to-four-month supply.

Samsung is under pressure to change direction and reduce production and capital spending.

U.S. memory maker Micron said it would cut spending on new plant and equipment and cut output. South Korean chipmaker SK Hynix has also scaled back investment and production, while Japan's Kioxia said it would cut production by 30%. Kioxia, which makes NAND, is in merger talks with U.S. production partner Western Digital Corp., which people familiar with the matter said this month are making progress, Bloomberg reported.