Samsung Electronics is permanently stopping production of its Galaxy Note 7 smartphones amid problems that are causing the devices to burst into flames.

Samsung released a statement Tuesday confirming it will no longer make the device after replacement phones sent to affected consumers were also experiencing dangerous overheating issues.

Related: Samsung halts sales of Galaxy Note 7 after new troubles

"For the benefit of consumers' safety, we stopped sales and exchanges of the Galaxy Note 7 and have consequently decided to stop production," reads Samsung's statement.

Shares in Samsung Electronics closed down 8% — its biggest daily percentage drop since 2008 according to Reuters — with almost $20 billion wiped off the company's value Tuesday.

Late Monday, Samsung had asked its global network of retailers to stop selling the Note 7 while it investigated the matter. And on Sunday, the world's largest smartphone maker temporarily halted production because some of the phones are overheating when charged.

Samsung recalled 2.5 million of the original Note 7s last month, with consumers exchanging many of the phones for handsets that Samsung said were safe to use.

Last week, a replacement Note 7 caught fire on a Southwest Airlines flight from Louisville to Baltimore, prompting an evacuation. In the days since, there have been reports of at least two other phones overheating.

Killing off the Note 7 would deal a massive blow to Samsung, which has been considered the top hardware manufacturer in the Android smartphone space. Some analysts projected the recall and halt in production could cost Samsung up to $2 billion.

Meanwhile, competition the smartphone space continues to heat up with Apple and its iPhone 7 as well as Google, which introduced the Pixel smartphone last week.

The end in production could also impact the economy of South Korea's, the home of Samsung. South Korean finance minister Yoo Il-ho said Samsung scrapping the Note 7 could hurt the country's exports, reports Reuters.

Contributing: Edward C. Baig and Jon Swartz.