Samsung Electronics "significant progress in HBM quality verification"...Semiconductor operating profit of 3.9 trillion

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.

However, we said that we have secured significant progress in HBM quality verification for Nvidia delivery, and we will connect you with 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.

[Anchor]
There's also new news regarding HBM?

[Journalist]
Yes, that's right.

Just now, during the Q3 earnings conference call, there was a mention of Nvidia's quality verification test.

Kim Jae-joon, vice president of memory business, said he has secured significant progress in completing critical steps in quality testing for major clients, namely Nvidia.

He then predicted that sales of HBM3E, or 5th generation HBM, are expected to expand during the fourth quarter, and that Nvidia will actually succeed in delivering within the fourth quarter.

If Nvidia's delivery, which was the biggest difference from SK Hynix, is successful, it is expected to prove technological competitiveness and secure sales.

At the same time, Samsung Electronics will improve its business portfolio focusing on profitability in Q4 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 sixth-generation HBMs by the second half of next year, which will expand sales of fifth-generation HBMs and win or lose technology competition with Hynix.

I'm Park Kiwan of YTN.