Samsung Electronics' memory chip business, a key source of profit, has been impacted by a decline in demand for consumer electronics due to multiple unfavorable factors. In the third and fourth quarters of last year, the division's revenue fell by more than 20% year-on-year and quarter-on-quarter, and the operating profit of its device solutions division also fell sharply year-on-year and quarter-on-quarter.

The downward trend in demand for consumer electronics continues, and Samsung Electronics' memory chip business remains under pressure to perform. Analysts expect that the company's chip business unit may post a loss in the first quarter of this year.

Analysts expect that Samsung Electronics chip business is located in the device solutions division, in the first quarter of this year will be 14 years after another loss, the last time in the first quarter of 2009.

Specifically for the chip business, an analyst in South Korea is expected to see a loss of 3.3 trillion won, or about $2.5 billion.

The analyst expects that in the chip business of Samsung Electronics, DRAM and NAND flash memory shipments, in the first quarter is expected to decline 13% and 12%, respectively, while profits from the foundry business is also expected to decline due to the slowdown in demand.

Samsung Electronics' chip business, which accounts for a significant portion of the device solutions division's revenue, exceeded 50% in both the third and fourth quarters of last year, and a loss in the chip business will inevitably affect the device solutions division as well.

For the device solutions division, a South Korean analyst expects the division's operating loss in the first quarter will further expand to 4.1 trillion won.