Samsung Electronics Q3 Profits Decline 78%, Storage Market Expected to Revive Next Year_News_ALL NEW SEMI (ANSC)

Hi,welcome

Samsung Electronics Q3 Profits Decline 78%, Storage Market Expected to Revive Next Year

2023-11-02

Recently, Samsung Electronics released its Q3 financial report for 2023, with sales of 67.4047 trillion won, a year-on-year decrease of 12.21%; Net income decreased by 40% to 5.5 trillion won; The operating profit was 2.4336 trillion won, a year-on-year decrease of 77.57%; The current net profit was 5.8441 trillion won, a decrease of 37.76%.

Although Samsung Electronics' Q3 net revenue decreased year-on-year, the company still achieved its best performance so far this year due to signs of recovery in the battered storage chip market.

Before Samsung released its financial report, Apple announced that it would launch new customized chips, continuing the trend of major manufacturers developing chips independently.

ic- (42)_20231101145751_736

Last week, SK Hynix, a competitor of Samsung Electronics, stated that the artificial intelligence boom has driven the growth of demand for DRAM chips. As customers place orders and chip prices stabilize, the impact of reduced production by storage chip manufacturers is beginning to manifest.

Samsung stated in a statement that by 2024, the increase in artificial intelligence capabilities on devices will increase the demand for DRAM chips in high-end products. The company added that the arrival of some product update cycles next year will "potentially restore growth in demand for personal computers and mobile devices".

Samsung Electronics predicts that the prices of storage chips will increase in the fourth quarter compared to Q3, and with the development of artificial intelligence applications, the overall demand for such components will increase. The company stated that the overall capital expenditure this year is approximately 53.7 trillion won, of which 47.5 trillion won will be used for semiconductors, a slight decrease from 47.9 trillion won last year.

Samsung is currently catching up with SK Hynix, which is the only supplier of NVIDIA's next generation product, HBM memory. Samsung stated that it plans to double HBM's production capacity by 2024.

The copyright of this article belongs to the original author. The reprint of the article is only for the purpose of disseminating more information. If the author's information is marked incorrectly, please contact us immediately to modify or delete it. Thank you for your attention!

Hot news

Samsung Electronics and Zeiss Collaborate to Strengthen Focus on EUV Technology and Semiconductor Equipment

Samsung Electronics is deepening its cooperation with Zeiss Group in next-generation EUV and chip technology. Zeiss Group is the only optical system supplier for ASML Holding NV, the world's only supplier of extreme ultraviolet (EUV) optical systems.

TSMC announces that the A16 1.6nm process is expected to be mass-produced in 2026

Recently, TSMC held the "2024 TSMC North America Technology Forum" in the United States, revealing its latest process technology, advanced packaging technology, and three-dimensional integrated circuit (3D IC) technology, using this leading semiconductor technology to drive innovation in the next generation of artificial intelligence (AI).

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.