South Korea's Samsung Electronics' first-quarter profit fell to its lowest level in 14 years. In order to reverse the decline, Lee Jae-yong recently met with the heads of five pharmaceutical giants in the United States, hoping to find growth engines other than semiconductors.

(AFP)

[Compilation of Lu Yongshan/Comprehensive Report] South Korea’s Samsung Electronics’ profit in the first quarter fell to the lowest in 14 years, and the semiconductor business suffered heavy losses. Therefore, it made a decision to reduce production. The industry estimates that the effect of production reduction may not appear until the end of the second quarter. The company's second-quarter profit could drop another 98%.

In order to reverse the decline, Samsung Electronics Chairman Lee Jae-yong recently met with the heads of five pharmaceutical giants in the United States, hoping to find growth engines other than semiconductors.

Samsung Electronics' operating profit in the first quarter plummeted by 96% to 640 billion won (15.2 billion Taiwan dollars), of which the semiconductor business lost 4.58 trillion won (109 billion Taiwan dollars), so it decided to significantly reduce memory chip production capacity, the first time in 25 years , The reduction in production is between 20% and 25%.

According to industry estimates, the effect of Samsung Electronics' production reduction will not appear until the end of June at the earliest, and the profit in the second quarter may drop by another 98%.

Please read on...

In order to find new growth engines other than semiconductors, Lee Jae-yong recently held a series of meetings with CEOs (CEOs) of five large pharmaceutical companies during his visit to the United States, including Johnson & Johnson CEO Joaquin Duato, Bristol-Myers Squibb CEO Giovanni Caforio, Flagship Pioneering founder and CEO Noubar Afeyan, Biogen Group CEO Chris Viehbacher, Organon CEO Kevin Ali.

Samsung Electronics issued a statement stating: "Lee Jae-yong held a series of meetings with leaders in the US biotechnology field with the purpose of further developing Samsung Electronics' global cooperation in the entire industry and building it into a second semiconductor business."

Samsung Electronics did not disclose further details of the meetings, but said Lee and the CEOs had reached a consensus on strengthening the competitiveness of the biotech industry and nurturing new businesses.

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.

related news