According to the news, Samsung Electronics' chip business may lose 4 trillion Korean won in Q1_News_ALL NEW SEMI (ANSC)

Hi,welcome

According to the news, Samsung Electronics' chip business may lose 4 trillion Korean won in Q1

2023-05-11

Samsung Electronics expects its operating profit in the first quarter of this year to decline by nearly 96% year-on-year, to 600 billion Korean won. This number is far below the 14.12 trillion won in the same period last year and also lower than the market average expectation. According to foreign media reports, Samsung Electronics performed poorly in the first quarter, mainly due to a decline in chip demand. Analysts have predicted that the device solutions department where Samsung's chip business is located may experience an operating loss of up to 4 trillion won in the first quarter.

According to analysts' estimates, Samsung Electronics has an operating profit of 600 billion won in the first quarter, thanks to other businesses, despite a operating loss of 4 trillion won in the device solutions department.

未标题-4

Analysts expect Samsung Electronics' mobile division to grow strongly in the first quarter, driven by the newly launched Galaxy S23 smartphone, which may have offset losses in other business units and helped the company achieve meager profits overall.

An analyst from a South Korean securities company also stated that Samsung Electronics' profits in the first quarter mainly came from smartphones, which largely compensated for the huge losses in the chip business. Panels, home appliances, and electronic components also contributed to a certain amount of profits.

Analysts also expect that the sales of the Galaxy S23 smartphone will decline in the second quarter, so it cannot continue to make up for the huge losses of its chip and other business units as vigorously as in the first quarter, and Samsung Electronics' profits in the second quarter will also be affected.

Multiple institutions predict that Samsung Electronics may experience operating losses in the second quarter. This includes institutions such as Samsung Securities and SK Securities. This will be the second operating loss for Samsung Electronics in nearly 15 years since the fourth quarter of 2008. According to reports, the reasons for Samsung Electronics' poor performance include declining market demand, intensified competition, and rising raw material costs.

Hot news

Samsung Electronics to Expand Silicon Valley R&D Institutions to Specially Design AI Chips

Samsung Electronics plans to expand its research and development (R&D) facility in Silicon Valley, focusing on artificial intelligence (AI) chip design. In the process of reshaping the semiconductor industry with a focus on artificial intelligence chips, Samsung aims to strengthen its design capabilities to break the current market landscape dominated by large technology companies such as Nvidia in the United States.

Storage chip prices rise, module manufacturers are unwilling to follow up

Recently, storage chip manufacturers have been insisting on raising prices, but module manufacturers have refused to purchase and are unwilling to accept price increases. According to insiders, the demand for enterprise storage and cloud data centers has remained strong, but customers in the consumer market find it difficult to bear the significant price increase.

In Q3 2023, the top 10 global semiconductor equipment manufacturers achieved revenue exceeding $25 billion, a month on month increase of 3%

According to CINNO Research statistics, the total revenue of the global semiconductor equipment manufacturer market in the third quarter of 2023 exceeded 25 billion US dollars, a year-on-year decrease of 9% and a month on month increase of 3%.

Li Jidian plans to build a factory in Japan to promote its automotive chip business

The head of Power Semiconductor Manufacturing (PSMC) recently stated that the company will use its new factory in Japan as a springboard to significantly expand its automotive semiconductor business. "Japan has huge opportunities," said Huang Chongren, CEO of Li Jidian, in a media interview. Japan has a broad market prospect and a geographical advantage where many car companies gather.

Samsung's low-priced challenge to TSMC's 2nm battle begins

According to insiders, TSMC has demonstrated the process testing results of N2 (i.e. 2 nanometers) prototypes to its major customers such as Apple and Nvidia. Samsung is also actively launching a 2-nanometer prototype and adopting a low-cost strategy to attract customers such as Nvidia.

Nikon launches a new ArF immersion lithography machine, which is 30% cheaper in price

Recently, Nikon announced that it will officially launch the ArF 193 nano immersion lithography machine "NSR-S636E" in January 2024, which will further improve production efficiency and etching accuracy. It is reported that Nikon's exposure machine adopts an enhanced iAS design, which can be used for high-precision measurement, circular warping, and distortion correction. The overlap accuracy (MMO) is higher, claiming to not exceed 2.1 nanometers.

Intel's appeal wins $2.18 billion compensation judgment overturned

The Federal Circuit Court of Appeals in the United States has announced the overturning of a 2021 ruling by a Texas court jury, which found Intel to be liable for $2.18 billion in compensation to patent technology company VLSI for patent infringement. This is one of the largest rulings in US patent history. The appellate court held that Intel's infringement of one patent involving $675 million in compensation does not constitute infringement, while the infringement of the other patent involving $1.5 billion in compensation remains valid, but the amount of compensation needs to be reconsidered by the Texas court.

Spend 5 billion euros! STMicroelectronics will build a new SiC wafer factory

Recently, STMicroelectronics has decided to further expand its production facilities by establishing a brand new silicon carbide (SiC) semiconductor wafer fab in Catane, Sicily, Italy. The total investment amount is up to 5 billion euros, and the wafer factory will specialize in producing silicon carbide chips, which are key technologies for electric vehicles and have strong growth potential.

AMD plans to establish the world's largest design center in India

AMD announced the opening of its largest global design center, AMD Technostar, in Bangalore, India. This move is also part of AMD's global expansion, aimed at enhancing its competitiveness in the fiercely competitive semiconductor market.

Apple may abandon independent research and development of 5G modem chips

Supply chain sources have revealed that Apple may decide to stop developing its self-developed 5G modem chip after multiple failed attempts to improve it.