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Samsung cuts memory chip output on weak demand amid supply glut

South Korean tech giant expects 96% decrease in Q1 operating profit

SEOUL -- Samsung Electronics said on Friday that it is reducing memory chip production after it flagged a 95.8% plunge in first quarter operating profit from the same period last year, as a downturn in semiconductor demand hurts it and other manufacturers of the components.

"The company is cutting memory production volumes to a meaningful level," the South Korean company said in a statement shortly after releasing earnings guidance. "Demand for memory has declined due to the macroeconomic situation and low consumer sentiment."

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