Samsung’s third-quarter earnings fell short of analyst estimates.

Samsung Electronics Co.’s profit was below analyst expectations in the third quarter due to a 14% decline in its chip manufacturing business as declining pricing forced the sector to reduce capital spending.

Competitors reduce capital investment.

While Samsung, unlike its rivals, raises capital expenditures on semiconductors, pushing them up to 47.7 trillion by 2022, competitors like SK Hynix Inc. and Micron Technology Inc. lower their capital expenditures or chip output as they recover from the recession.

“Under persistent macroeconomic uncertainty, consumer inventories were adjusted to a greater extent than anticipated by the market, and consumer demand remained poor. Our sales results decreased as a result, and growth fell short of expectations, the company said in a statement.

Given macroeconomic headwinds brought on by demand for data center servers, Samsung said it now expects a rebound in the second half of 2023.

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