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But the world's largest semiconductor industry warned that there will be more short-term pain in the second quarter, as the data center will not refill the inventory later this year, and the price of memory chips may fall further before demand picks up.

“For the second half of 2019, the company expects demand for memory chips for high-density products to increase, but the uncertainty of the external environment will continue to exist,” the Korean technology giant said in a statement.

Affected by falling chip prices and slower display panel demand, Samsung announced that its operating profit for the January-March quarter was 6.2 trillion won ($5.4 billion), in line with the company's initial valuation announced earlier this month.

Samsung Electronics' revenue for the quarter fell 13.5% to 52.4 trillion won, which is also in line with an earlier estimate.

Samsung’s core semiconductor business operating profit fell 64% to 4.1 trillion won; the display business recorded a loss of 560 billion won.

In the context of the overall economic slowdown, the global smartphone market is sluggish, and the demand for data center chips that provide cloud services is declining, causing memory (memory) chip makers to suffer.


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