Tech

Samsung Electronics sees tough year with trade risks, slow growth

Key Points
  • Samsung Electronics expects a tough year due to global trade tensions, slowing economic growth and softer demand for memory chips from data center companies, the firm's co-chief executive said on Wednesday.
  • "We are expecting many difficulties this year such as slowing growth in major economies and risks over global trade conflicts," Co-Chief Executive Kim Ki-nam said.
Memory chips are seen on a Samsung Electronics memory module.
SeongJoon Cho | Bloomberg | Getty Images

Samsung Electronics expects a tough year due to global trade tensions, slowing economic growth and softer demand for memory chips from data center companies, the firm's co-chief executive said on Wednesday.

The world's biggest memory chipmaker reiterated its forecast of a weak 2019 as shareholders gathered for its annual general meeting in Seoul, citing a slowdown in demand for memory chips.

"We are expecting many difficulties this year such as slowing growth in major economies and risks over global trade conflicts," Co-Chief Executive Kim Ki-nam told the meeting.

Samsung is seeking new growth in areas such as network equipment manufacturing as sales of its mainstay chips and smartphones begin to drop.

The company would continue to make bold investments in semiconductor manufacturing in the face of stiffening Chinese competition, Kim said.

Shareholders are expected to vote on the appointment of board directors.