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Samsung Electronics is expected to post a near nine-fold increase in first-quarter profit from a year earlier as rebounding semiconductor prices lift earnings from a low base caused by a severe chip downturn. Operating profit for the world's biggest maker of memory chips and TVs likely rose to 5.7 trillion won (S$5.71 billion) in the quarter ended March 31, according to the average of an LSEG SmartEstimate from 27 analysts, weighted toward those who are more consistently accurate. https://lnkd.in/eCPzw9Qu

Samsung Electronics’ operating profit jumps 933% in first quarter, beats expectations Samsung Electronics, the world’s largest memory chip maker, said operating profit jumped 932.8% in the first quarter ending March. Samsung’s revenue for the quarter ending March jumped 12.81% from a year ago, while operating profit soared 932.8% in the same period. The figures were in line with the company’s guidance earlier this month, where Samsung said operating profit in the January-March quarter likely rose to 6.6 trillion Korean won, up 931% from a year ago. The firm expected first quarter revenue at 71 trillion won. The South Korean electronics giant saw record losses in 2023 as the industry reeled from a post-Covid slump in demand. Citi analysts said they see upside for Samsung’s NAND flash memory business as a result of AI computing demand. “We expect storage (HDD) to be the next bottleneck in AI computing, especially in AI training, and foresee Samsung Electronics to be one of the key beneficiaries of SSD demand momentum for AI training,” said the Citi analysts. Samsung said it expects the second quarter to be driven mostly by demand for generative AI, while mobile demand remains stable. https://lnkd.in/gbAQN7Fd 

Samsung Electronics’ operating profit jumps 933% in first quarter, beats expectations Samsung Electronics, the world’s largest memory chip maker, said operating profit jumped 932.8% in the first quarter ending March. Samsung’s revenue for the quarter ending March jumped 12.81% from a year ago, while operating profit soared 932.8% in the same period. The figures were in line with the company’s guidance earlier this month, where Samsung said operating profit in the January-March quarter likely rose to 6.6 trillion Korean won, up 931% from a year ago. The firm expected first quarter revenue at 71 trillion won. The South Korean electronics giant saw record losses in 2023 as the industry reeled from a post-Covid slump in demand. Citi analysts said they see upside for Samsung’s NAND flash memory business as a result of AI computing demand. “We expect storage (HDD) to be the next bottleneck in AI computing, especially in AI training, and foresee Samsung Electronics to be one of the key beneficiaries of SSD demand momentum for AI training,” said the Citi analysts. Samsung said it expects the second quarter to be driven mostly by demand for generative AI, while mobile demand remains stable. https://lnkd.in/gbAQN7Fd 

Samsung Elec expects $100 mln or more sales from advanced chip packaging business Samsung Electronics (005930.KS), opens a new tab that expects $100 million or more of revenue from its next batch of advanced chip-packaging products this year, co-CEO Kye-Hyun Kyung said on Wednesday. Samsung set up advanced chip packaging as a business unit last year, and Kyung said he expects the results of Samsung's investment to come out in earnest from the second half of this year. Kyung's remarks were made during Samsung's annual general shareholders' meeting. Samsung's memory chip business seeks to achieve a greater profit share than its market share this year, Kyung said. Samsung's market share in DRAM chips, used in tech devices, reached 45.5% in the fourth quarter last year, according to the data provider TrendForce. To do this, Samsung seeks to secure a competitive advantage in high-end memory chips required by booming artificial intelligence demand, including mass producing a 12-stack version of high-bandwidth memory (HBM) chips called HBM3E. For a future generation of HBM chips called HBM4, likely to be released in 2025 with more customised designs, Samsung will take advantage of having memory chips, chip contract manufacturing and chip design businesses under one roof to satisfy customer needs, Kyung said. Answering a shareholder question on Samsung's recent setback in the current HBM market compared to rival SK Hynix (000660.KS), opens a new tab, Kyung said: "We're better prepared to prevent that from happening again in the future". #technews #news #dailynews #dailynewsupdate #latestnews #latestupdates

Memory Market Soars: Samsung and SK Hynix Anticipate High 2024 Profits Exciting developments are on the horizon for the memory market as Samsung and SK Hynix, the titans of memory chip manufacturing, gear up for a lucrative 2024. Projections suggest that these industry giants could collectively rake in over $15 billion, fueled predominantly by the demand for AI chips. According to the World Semiconductor Trade Statistics (WSTS), the global memory market is poised to experience a remarkable surge, reaching $129.8 billion in 2024—a staggering 45% increase from $89.6 billion this year. This marks a pivotal moment for the memory industry, signaling its first growth in three years. The broader semiconductor market, encompassing memory chips, is anticipated to witness a robust 13.1% year-on-year growth, reaching $588.4 billion in 2024. Samsung, a market leader that initially resisted production cuts, made a strategic move in April to align with industry trends, providing a breath of relief to the market. The decision is expected to contribute to an early recovery and reinforces Samsung’s commitment to market dynamics. While maintaining current output cuts for DRAM chips, Samsung is poised to amplify its production volume and investment in advanced chips, including high bandwidth memory (HBM) DRAM—whose cost is up to 10 times that of commoditized DRAM chips. Not to be outdone, crosstown rival SK Hynix is aggressively boosting investment in the HBM series of DRAM chips, solidifying its position as a leader in the HBM category. According to TrendForce, the global HBM market is projected to soar to $8.9 billion by 2027 from $3.9 billion this year. As we approach 2024, the landscape of the memory market is set for a transformative journey, with Samsung and SK Hynix at the forefront of innovation and prosperity. #MemoryMarket #SemiconductorIndustry #AIChips #Samsung #SKHynix Link: https://lnkd.in/gN2aAM2G Pic courtesy: Nikkei Asia

Source: #TrendForce NAND Flash memory confirms a 28.1% ($14.71 billion) growth in Q1 2024 with growth expected to continue into the Q2. Big changes in market rankings as #Micron overtook #WesternDigital for 4th place. 1) #SamsungElectronics maintains its market lead of 36.7% improving 28.6% QoQ.  2) #SKhynix is 2nd at 22.2% market share (and a 31.9% QoQ growth).  - Growth was driven by #smartphone and #server orders. 3) #KIOXIA Group grew 26.3% QoQ, with a 12.4% market share. - production cuts from the previous quarter were offset by rising Flash prices. 4) #MicronTechnology grew a strong 51.2% QoQ, with an 11.7% market share.. - #Micron benefited from slightly lower prices than its competitors. 5) #WesternDigital growth of 2.4% with a decline in the retail market (starting in February) being overcome by increased contract prices, resulting in 11.6% market share.

#Samsung Electronics is poised to make a comeback in the #memory industry, as its memory business is expected to return to profit in Q1 2024. According to Commercial Times, Samsung's #DRAM utilization rate is projected to increase from 70% in Q4 2023 to 81% in Q1 2024, and further rise to 89% in Q2. This is due to inventory improvements, and the company's reported adjustments to #DRAM and #NAND flash capacity to boost prices. Read more about this report from TrendForce: https://lnkd.in/dAqMA3Hd

Samsung's memory semiconductor business is expected to make a recovery by 2024, according to Omdia. The company's DRAM manufacturing is predicted to recuperate the returns that were lost in the past year. In Q1 2024, Samsung's wafer production was 1.575M units, a 25% decrease compared to last year, but it's expected to increase to 1.785M units in Q2 2024, bringing it to a similar level as last year. Omdia anticipates that production will gradually increase compared to the previous year from 2H24. In Q3 2023, the forecast is 1.965M units, which is 11% higher than the same period last year. For Q4 2024, it is projected that quarterly production will exceed 2M units, recovering to pre-memory semiconductor downturn levels. #samsung #techgiants #chips #memorychips #semiconductor #semiconductors #semiconductormanufacturing #dram #hardware #computerhardware #omdia #forecasts #trends2024

Samsung and Micron plan to raise prices by 20% in Q1. #semiconductor #electricalengineering #mobilecommerce #alternativeenergy #Electronic #ATMEL #vehicleelectronics #artificialintelligence #newenergyvehicles #InternetofThings #robot #Wirelesscommunication #Electroniccomponents Memory giants like Samsung and Micron are reportedly planning a 15-20% price hike for DRAM in the first quarter of 2024, shifting focus from NAND Flash. Despite ongoing market uncertainties, this move is seen as an effort to address operational losses and improve overall profitability. Smartphone and server demand recovery is expected to keep the DRAM market tight throughout 2024. Industry insiders anticipate the price surge to commence in January, prompting customers to plan ahead for their future memory requirements. This follows a modest 2-3% increase in DRAM prices in December, notably lower than the 10% rise in 3D TLC NAND prices. In a parallel development, NAND chip suppliers are expected to raise prices by over 40%, with a potential for another 50% surge in the short term. Major manufacturers, including Samsung, have been strategically reducing NAND chip production to stabilize prices and plan for a gradual 20% price increase each quarter until mid-2024. While the market's actual buying activity has not fully rebounded, predictions indicate cautious optimism in the first half of 2024. The next few quarters will be pivotal, and successful demand alignment could ensure a positive outlook for the memory industry, addressing the current supply-demand imbalance.

Samsung's Q1 Profits Soar by 931.87% On April 30th, Samsung Electronics of South Korea officially announced its financial report for the first quarter of 2024. Benefiting from the strong growth in its memory chip business and robust sales of its flagship smartphone Galaxy S24, Samsung Electronics achieved an operating profit of 66.06 trillion Korean won (approximately 346.15 billion yuan) in the first quarter of 2024, soaring by 931.87% compared to the same period last year! According to the financial report, Samsung Electronics' revenue for the first quarter of 2024 was 71.9156 trillion Korean won, higher than the previous quarter's 67.78 trillion Korean won, marking a 12.82% increase compared to the same period in 2023. The operating profit reached 66.06 trillion Korean won, a staggering 931.87% increase from the same period in 2023 when it was 6.4 trillion Korean won. This exceeded the market's expectation of 56 trillion Korean won. The net profit reached 67.5 trillion Korean won, slightly higher than the previous quarter's 63.4 trillion Korean won, marking a 329% increase compared to the same period in 2023 when it was 15.7 trillion Korean won. Samsung's semiconductor business achieved a profit of 1.91 trillion Korean won, turning losses into gains Samsung Electronics' significant increase in operating profit in the first quarter was mainly due to the rapid growth of its semiconductor business. According to the financial report, the combined revenue of the Device Solutions (DS) division responsible for the semiconductor business in the first quarter of 2024 reached 23.14 trillion Korean won, a substantial increase of 68.54% compared to the same period last year's 13.73 trillion Korean won. Operating profit has turned from a loss of 4.58 trillion Korean won (approximately 239.53 billion yuan) in the same period last year to a profit of 1.91 trillion Korean won (approximately 99.89 billion yuan). This is also the first time since the fourth quarter of 2022 that the department has achieved profitability. Samsung Electronics attributed the rapid growth and turnaround of its semiconductor business to the increased demand for HBM (High Bandwidth Memory), DDR5, SSDs for servers, and UFS4.0-related storage products, as well as the rapid rise in prices, all achieved through Samsung Electronics' active supply efforts. It should be noted that Samsung Electronics' semiconductor business includes memory, system LSI, and chip foundry businesses. Among them, memory chip business is its main source of revenue in the semiconductor business. MORE--> 📖▶️: https://lnkd.in/dBQ5b_nc