Samsung Electronics’ 3Q operating profit 31.7%↓
‘Apple Effect’ TSMC’s sales soared by 48%
Samsung Electronics, which surpassed Intel in the United States last year and ranked first in global semiconductor sales, recorded an ‘earning shock’ in its third quarter earnings that fell short of market expectations, while TSMC, Taiwan’s No. As the price of memory semiconductor, which is Samsung Electronics’ main field, is expected to continue to fall, the market prediction that TSMC will surpass Samsung Electronics in sales at the end of this year is also becoming a reality.
▲ Samsung Electronics (left) and Taiwanese TSMC are competing in a foundry high-tech process. Seoul Newspaper DB
According to industry sources on the 8th, Samsung Electronics’ interim consolidated results for the third quarter were 76 trillion won in sales and 10.8 trillion won in operating profit. Sales increased by 2.73% compared to the same period last year and increased by 1.55% compared to the second quarter of this year.
The problem is the sluggish operating profit. Operating profit decreased by 31.73% compared to the same period last year, and decreased by 23.4% compared to the second quarter. The decline in Samsung Electronics’ operating profit is believed to be attributable to the increase in raw material prices caused by the supply chain disruption and the contraction in demand caused by the global economic downturn. According to TrendForce, a Taiwanese market research firm, DRAM and NAND flash prices in the third quarter are estimated to have fallen by 10-15% and 13-18%, respectively, from the previous quarter.
Although the results of each business division were not disclosed in the interim earnings announcement, the operating profit of the semiconductor (DS) division in the third quarter is not expected to exceed 7 trillion won. This is a 30% drop compared to the DS division’s operating profit of 9,980 billion won in the second quarter.
At a staff meeting held on the 28th of last month, a senior Samsung Electronics official said, “We have lowered our sales guidance (company forecast) for the second half of this year (company forecast) by 30% from our April forecast,” and predicted that the memory cold wave would continue.
TSMC, on the other hand, recorded sales of NT$613 billion (regarding 27.3 trillion won) in the third quarter, a 48% increase from the same period of the previous year. This performance far exceeded the market forecast of NT$603 billion, and it seems that the effect of the launch of the iPhone 14 by Apple, the largest customer, is reflected.
▲ iPhone 14 Pro. AP Yonhap News
iPhone 14 Pro and Pro Max, which Apple is sequentially releasing to the global market, are equipped with SOC (System-on-Chip) manufactured by TSMC’s 4-nm process. We are facing a more difficult market as inventories are piling up and orders dwindled by data center and set maker customers. “This suggests that a serious recession that investors feared might be avoided.”
Reporter Park Seong-guk
