Samsung Electronics has reported a sharp decline in profits for the fourth quarter of 2020, with a year-on-year drop of 70%. The South Korean tech giant said its operating profit was 4.1 trillion won ($3.7 billion), the lowest since 2014.

The drop in profits was attributed to a decrease in demand for smartphones and PCs, as well as the rising cost of components. Despite the decline in profits, Samsung said it will continue to invest in chip production, as demand for chips remains high.

The company’s sales for foundry services, which includes semiconductor manufacturing, hit a record high of 8.7 trillion won ($7.9 billion). This was a 6.7% increase from the same period last year.

Samsung’s shares fell by 3.3% in response to the news, with many investors expressing concern over the company’s future prospects.

However, some analysts remain bullish on the tech giant’s prospects, citing the strong demand for chips and the company’s commitment to invest in the sector.

Overall, the news has raised questions about the future of Samsung and the global tech industry.

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