https://www.straitstimes.com/business/samsung-profit-tumbles-35-as-chip-weakness-persists
35% plunge in operating incum...not profit
35% plunge in operating incum...not profit
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OMG...even Gyorea Semiconductors also not making $$$$$
- Thread starter k1976
- Start date
South Korea’s largest company reported a 35 per cent fall in operating income to 2.8 trillion won (S$2.8 billion), about 24 per cent shy of estimates.
Revenue slid more than anticipated to 67 trillion won. In all of 2023, Samsung reported its slimmest operating profit in 15 years.
Revenue slid more than anticipated to 67 trillion won. In all of 2023, Samsung reported its slimmest operating profit in 15 years.
The results underscore how demand for smartphones and the memory chips that power modern electronics remains sluggish given economic uncertainty. It also muddies the outlook for a market recovery that many investors had hoped would emerge in 2024.
In December, rival Micron Technology delivered a better-than-projected revenue outlook that suggested data centre construction may make up for lukewarm computing and mobile device markets.
“This shows that the rebound is slower than we all thought,” said Mr Tom Kang, research director at Counterpoint Technology Market Research. “Prices are not rising that fast and the demand from certain sectors is not that strong.”
In December, rival Micron Technology delivered a better-than-projected revenue outlook that suggested data centre construction may make up for lukewarm computing and mobile device markets.
“This shows that the rebound is slower than we all thought,” said Mr Tom Kang, research director at Counterpoint Technology Market Research. “Prices are not rising that fast and the demand from certain sectors is not that strong.”
Samsung in October predicted the long-depressed US$160 billion (S$212.7 billion) memory market will bounce back gradually in 2024, driven by a boom in artificial intelligence (AI) development.
Prices should start climbing out of troughs around the latter part of 2023, executives said at the time.
The company’s shares fell as much as 0.9 per cent in Seoul on Jan 9.
Its disappointing results stem partly from a low utilisation rate in its foundry chipmaking business, said CLSA Securities Korea analyst Sanjeev Rana.
Prices should start climbing out of troughs around the latter part of 2023, executives said at the time.
The company’s shares fell as much as 0.9 per cent in Seoul on Jan 9.
Its disappointing results stem partly from a low utilisation rate in its foundry chipmaking business, said CLSA Securities Korea analyst Sanjeev Rana.
But there are signs of recovery. South Korea’s semiconductor industry in November recorded the largest gains in years in both production and shipments.
Given rising memory prices and improving demand, “it is likely that Samsung’s chip business will return to profitability within the first half of 2024”, Mr Rana added.
Investors will want to hear about Samsung’s longer-term investment plans, particularly in the field of AI, when executives preside over the release of its full results on Jan 31.
The company now aims to catch up with rival SK Hynix in the burgeoning field of high-density memory chips, where it plans to increase capacity by 2.5 times in 2024.
High bandwidth memory, an advanced chip that handles data more quickly, works with hardware such as Nvidia Corp’s accelerators to speed up data processing for intensive tasks such as training AI models.
Given rising memory prices and improving demand, “it is likely that Samsung’s chip business will return to profitability within the first half of 2024”, Mr Rana added.
Investors will want to hear about Samsung’s longer-term investment plans, particularly in the field of AI, when executives preside over the release of its full results on Jan 31.
The company now aims to catch up with rival SK Hynix in the burgeoning field of high-density memory chips, where it plans to increase capacity by 2.5 times in 2024.
High bandwidth memory, an advanced chip that handles data more quickly, works with hardware such as Nvidia Corp’s accelerators to speed up data processing for intensive tasks such as training AI models.
They asked for it.
Under the directives from United Snakes to ban chip sales to China.
Karma.
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