Samsung’s Operating Losses Impact South Korean Economy, Aims to Build New Chip Center
New Analysis
Samsung, the pillar of South Korea’s economy, has seen its profit plunge in 2022 due to weak chip and smartphone demand. The company’s weak financial performance has impacted the overall South Korean economy.
To reverse the weakening profitability, Samsung Electronics plans to invest 300 trillion won (about $227 billion) over the next 20 years to build five new chip plants in South Korea as part of the government’s goal to establish “the world’s largest” chip center by 2042.
The Samsung Group accounts for about 20 percent of South Korea’s GDP and is vital to South Korea’s economy.
Data released on Jan. 31 by Samsung Electronics, the most profitable division of the Samsung Group, showed its operating profit for 2022 was 43.38 trillion won (about $35 billion), dropping 15.99 percent over the previous year….