Samsung Electronics Co’s profit fell by 69% in its nastiest fall in more than a decade amid an economic slowdown that beat memory chip prices and claims for IT gadgets and servers.

Functioning profit fell to 4.3 trillion won for the three months that ended December, lost the average evaluation of 6.7 trillion won by analysts. Sales demolish to 70 trillion won. Samsung is scheduled to deliver a complete financial statement with net income and information on divisional performance on 31st January.

The emergency in the memory chip market has been further worsened by US endorsements on chip-related exports to China, down demand from some of Samsung’s key customers. Chip auctions in South Korea, a bellwether for global tech demand, demolished 29% from the earlier year in December, in the fifth successive monthly drop and on the heels of the most significant year-on-year decay since 2009.

After manufacturing to record levels to encounter a pandemic-era gush in demand, chipmakers have had to gash outlay on new products and cut costs to survive.

Memory chipmakers, including Micron Technology Inc, have said they don’t expect a recovery until the second half of this year and have lowered budgets for new tackle and plants and cut charges. Micron further cautioned it’d be problematic to return to effectiveness this year, proclaiming a 10% reduction to its workforce and more cuts in capital incidentals.