Samsung Electronics Q3 Semiconductor Operating Profit of 3.86 Trillion...Below the Market Forecast

Samsung Electronics Q3 Operating Profit 9.2 Trillion...Sales are KRW 80 trillionSemiconductor Operating Profit of 3.9 Trillion...KRW 3 trillion lower than Hynix

Nvidia HBM delivery and China offensive widen earnings gap

Samsung Electronics Ratings Memory Semiconductor Sales 'Previous'

[Anchor]
Samsung Electronics only posted an operating profit of less than the market forecast of KRW 4 trillion in its semiconductor business in the third quarter.

It was also very different from SK Hynix's operating profit, so I will connect you to a detailed news reporter. Reporter Park Kiwan!

Simseong Electronics Semiconductor Report Card Is Below Market Forecast?

[Reporter]
Yes, Samsung Electronics just announced its third quarter final performance.

Samsung Electronics said its operating profit in the third quarter of this year was KRW 9.2 trillion on a consolidated basis, up 277% from the third quarter of last year.

Sales increased 17% to 80 trillion won and net profit increased 73% to 10.1 trillion won.

In particular, for the device solutions division responsible for the semiconductor business,

It recorded 29.2 trillion won in sales and 3.9 trillion won in operating profit.

The gap with SK Hynix, which recorded 7.3 trillion won in operating profit in the third quarter, also widened to more than 3 trillion won.

[Anchor]
Why is the difference so wide?

[Reporter]
Yes. The market believes that the situation has been mixed in the sale of high-value-added HBMs.

Analysts say that Hynix has significantly surpassed Samsung Electronics' performance by supplying high-bandwidth memory semiconductors and HBMs exclusively to Nvidia and other companies.

In addition, the price fell due to the expansion of general-purpose memory from China, which had an adverse effect.

However, some say that Samsung's memory semiconductor performance itself has been good.

Demand for advanced memory semiconductors for AI has increased, and in particular, sales of memory semiconductors used in smartphones have been solid due to increased sales of Galaxy.

However, it is estimated that one-time expenses such as incentives worth 1.2 trillion won and exchange losses worth 500 billion won contributed to the decrease in operating profit.

On top of that, considering the deficit in the foundry and system LSI division,
It explains that the operating profit of
memory semiconductor itself is not much different from that of SK Hynix.

Samsung Electronics will first improve its business portfolio focusing on profitability in the fourth quarter and next year
It plans to actively respond to the demand for high value-added products for AI such as
HBM and SSD for servers.

In particular, it also announced plans to develop and mass-produce 6th-generation HBMs by the second half of next year, which will expand 5th-generation HBMs and win or lose technology competition with Hynix.

So far, I'm Park Ki-wan of YTN in the Ministry of Economy.