Samsung is already struggling with micro chip supply issues. Will Biden make the problem worse?
A chip glut continues to drive large losses in Samsung business despite supply cuts, as its June-quarter profits are expected to slump 96% year-on-year to the lowest in more than 14 years.
The world’s largest manufacturer of memory chips, smartphones and TVs likely lost 555 billion won ($427 million) in the April-June period.
In that case, Samsung Electronics would report its lowest profit since the fourth quarter of 2008, when it reported an operating loss of approximately 740 billion won. In the April-June quarter of last year, the operating profit was 14.1 trillion won.
Despite lower memory chip prices and lower inventory values, its chip division, traditionally its biggest earner, likely reported quarterly losses of around 3 trillion to 4 trillion won.
President Biden is looking to bring greater chip manufacturing to the U.S. which could further disrupt supply chains for the South Korean company. #samsung #micro chips #biden #featured
