Samsung released on January 31 its financial results for the last quarter of 2022 and its balance sheet for the financial year. Like many companies specializing in the design of semiconductors, the South Korean group is influenced by a drop in demand for microchips and smartphones.
Sales of Samsung DRAM and NAND chips down 96.9%
With a turnover of almost $57 billionSamsung displays, for the fourth quarter of 2022, a decline of 8% over the rolling year. Over the past three months, the company’s profit amounts to approximately 3.5 billion dollarsfar from the 4.7 billion dollars expected by analysts. That’s 69% less than at the same period in 2021, in line with the forecasts shared at the beginning of January.
These results are explained by the collapse of its division dedicated to DRAM chipsfor dynamic random access memory, and NAND, for flash memory. During the last quarter of the year, it brought in just over $218 billion, or a decrease of 96.9% compared to the fourth quarter of 2021. This is its lowest level since the first quarter of 2009.
On the other hand, the revenues of its branch dedicated to mobile telephony and network activities fell 36.1%, generating $1.4 billion. Even though Samsung remains the industry leaderaccording to Canalys, the global smartphone market signed its worst quarter in 10 years at the end of 2022 and reveals an industry in decline.
The semiconductor sector held back by bad winds
The difficulties encountered by Samsung echo those of its competitors. After having benefited for a long time from the new needs created during the pandemic, the return to normal work habits is accompanied by a drop in demand for companies specializing in the manufacture of semiconductors.
With a difficult economic situation, marked by inflation, the war in Ukraine and the American restrictions imposed on China, their customers are more cautious. These latter are trying to sell their stocks before placing a new order. When releasing Intel’s financial results, Pat Gelsinger, its chief executive, said, to expect to happen the largest inventory corrections ever seen in the industry ».
For 2023, Samsung plans to “ continue to make necessary infrastructure investments to meet medium and long-term demand “. To conclude, the giant precise What are they ” capital expenditure plan should be similar this year to previous years ».
