Samsung Electronics suffered a 4.6 trillion won shortfall in the semiconductor sector alone due to deteriorating global memory market conditions.
This is the first time in 14 years that Samsung Electronics has recorded a quarterly loss in the semiconductor sector after consecutive losses in the fourth quarter of 2008 and the first quarter of 2009 during the financial crisis.
Samsung Electronics announced that its operating profit for the first quarter of this year on a consolidated basis was 640.2 billion won, a decrease of 95.5% from the same period last year.
Sales were KRW 63.7454 trillion, down 18.1% from the same period last year, and net profit was KRW 1.5746 trillion, down 86.1%.
In particular, it was confirmed that the device solution and DS divisions, which are in charge of semiconductors, recorded an operating loss of 4.58 trillion won.
DS division sales only earned 13.73 trillion, but compared to the same period last year, it was halved.
In terms of memory semiconductors, prices fell significantly as customers continued to adjust their inventories, leading to lower performance. Demand for DRAM was also slow due to high inventories from customers such as servers.
However, the mobile experience responsible for smartphones, the sales effect of Galaxy S23 in the MX business seems to have compensated for the shortfall in the semiconductor sector.
Even in difficult circumstances, investment has increased significantly.
Samsung Electronics announced that its investment in a facility in the first quarter of this year was KRW 10.7 trillion, up 36% from the same period last year, and KRW 9.8 trillion, or 82%, was invested in the semiconductor sector.
In the market, as Samsung Electronics joins the production cuts of the memory industry, it is expected that the effect of the production cuts will begin in earnest from the second half of the year, and the decline in memory prices will enter a real period.
However, there are views that there will be limits to improving the industry by reducing supply alone, as the exit from the semiconductor recession tunnel is difficult to see, and external variables such as the conflict between the US and China and the Ukraine war is uncertain.
