After reporting its lowest profits in nearly 15 years, Samsung Electronics has announced it will reduce chip production.

The South Korean tech titan announced on Friday that it expects first-quarter operating profits to plummet by more than 96% due to a global decline in memory chip sales.

According to a regulatory filing, Samsung expects its profits for January-March to fall to 600 billion won ($455m), a 14-year low. The company cited "continuing weak demand for IT products, which has worsened the performances of all sectors".

Samsung, the largest conglomerate in South Korea, did not specify how much it would reduce production but said the reduction would be "significant."

The company stated, "We are significantly reducing the production of memory chips, particularly for those products with a secure supply."

The announcement is the most recent indication that deteriorating global economic conditions are impacting South Korean chipmakers like Samsung and SK Hynix, which have enjoyed years of record-breaking profits on the back of ferocious chip demand.

The final quarter of 2022 witnessed a nearly 70 per cent decline in profits for Samsung, which was attributed to headwinds such as Russia's conflict in Ukraine and high inflation.

Samsung Group is the largest of South Korea's family-run conglomerates, accounting for roughly one-fifth of the country's gross domestic product (GDP).