Samsung Electronics shattered another record for maximum performance. Contrary to market fears revealed by stock price crashes, it is projected that semiconductor demand will continue to grow and profitability will increase further.
On the 30th, Samsung Electronics announced that it achieved sales of 171 trillion 499.5 billion won and operating profit of 89 trillion 492.4 billion won in the second quarter of this year. Compared to the same period last year, sales surged by 130% and operating profit by 1,813.8%. This marks the third consecutive quarter achieving record highs for both sales and operating profit.
Combined with SK Hynix, which announced its results the previous day, South Korea's top two memory semiconductor firms generated a total of 244 trillion 878.1 billion won in the first half of this year alone. Based on the second quarter, this amounts to earning 1 trillion 648.7 billion won per day.
Operating profit was largely generated from the Memory Lisa division. The DS (Device Solutions) division responsible for semiconductors recorded sales of 127 trillion 500 billion won and operating profit of 89 trillion 200 billion won. Among these, the operating profit margin of the Memory Lisa division is estimated to have approached 80%, placing it on par with SK Hynix (76.3%) and Micron Technology (80.4%) as one of the world's highest levels.
However, finished products that were directly hit by sharp increases in memory prices and rising costs recorded a quarterly loss for the first time. The DX (Device Experience) division performed well with 'first-ever sales exceeding 100 trillion won in the first half' but recorded an operating loss of 80 billion won due to deteriorating profitability. The MX (Mobile Experience) business unit that makes smartphones posted a loss of 70 billion won, and the TV & Home Appliances business unit posted a loss of 10 billion won. Subsidiaries Samsung Display and Harman reported operating profits of 70 billion won and 40 billion won, respectively.
The outlook for the second half is bright. On this day, at its management briefing, Samsung Electronics stated that it has already finalized or is in the final stages of negotiations for LTA (Long-Term Agreements) with at least five years as a baseline with 10 companies including global big tech firms. The company emphasized, "It will be possible to fully meet the volume from multi-year contracts for 60-70% of our planned capacity." Advance payments with the nature of deposits have also already been received.
Most notably, demand is surging even for foundry (contract manufacturing), which has consistently recorded losses. Accordingly, Samsung Electronics plans to begin construction on its second Taylor fab in Texas, USA, by the end of this year, targeting Yangsan by 2030. The DX division also aims to improve profitability through strategies such as expanding sales of new products like the 'Galaxy Z8' series, diversifying businesses, and strengthening new ventures including robotics.
in INDUSTRY
