The global economy remains weak and increased competition will “pressure” Samsungs profitability this year, Vice President Robert Yi said in a conference call. The Suwon, South Korea-based company reported today first-quarter net income fell to 619.2 billion won ($461 million) from 2.19 trillion won a year earlier because of losses from chips and LCDs.
Samsung fell the most in three months in Seoul trading, snapping a two-day rally, as concerns over the profit outlook overshadowed earnings that beat estimates. Credit Suisse Group AG said the South Korean [...]

Economics Affairs Minister Yiin Chii-ming says the government will probably name a semiconductor expert this week to oversee the formation of a state-owned chipmaker. The plan may involve tie-ups with Japans Elpida Memory Inc. and U.S.- based Micron Technology Inc., according to Yiin.
The industrys biggest overhaul since 1999 may lead to the shuttering of older plants to ease a glut and help smaller chipmakers compete against Samsung Electronics Co. as they cope with the markets longest contraction in more than a decade. The global recession is [...]

The net loss - Samsungs first since the company began reporting results on a quarterly basis in the third quarter of 2000 - underlines the challenges facing electronics companies worldwide as major economies flounder in recession.
The Suwon, South Korea-based company has struggled with falling prices for chips and flat screens, as well as the waning consumer appetite that has hit other Asian electronics manufacturers including Japanese giant Sony Corp.
On Thursday, Sony projected its first annual loss in 14 years, while South Koreas LG Electronics Inc. reported a record quarterly net loss. Japans Panasonic Corp. said earlier this month it would [...]

Samsung is the worlds biggest memory-chip maker. Flash memory chips are widely used in portable electronics. Theyre popular because they access data quickly, require little power and are rugged enough to withstand drops without losing information.
Spansion claims Samsung has sold $30 billion worth of products over the past five years that contain patented Spansion technologies.
“Spansion has patents that are fundamental to flash memory. Samsung itself has cited these patents many times in its own patent filings, underscoring industry acceptance of the fundamental nature of Spansions (intellectual property),” Robert Melendres, Spansions general counsel, said in a statement.
Samsung declined to comment.
Spansion filed [...]

Some computer components like processor chips are not experiencing the desired demand, while oversupply takes up warehouse space. Samsung and its competitors have struggled with falling prices amid an oversupply of chips.
The Suwon, South Korea-based company said it earned 1.22 trillion won ($869 million) in the three months ending Sept. 30, down from 2.19 trillion won a year ago.
Despite lower prices on some products, its overall sales rose 15.4 percent to 19.3 trillion won ($13.7 billion) from 16.7 trillion won a year earlier.
“Overall, our third-quarter earnings were impacted by the worsening market conditions resulting from the slowdown in the global [...]