Quarterly income of KRW 74.07 trillion, working revenue at KRW 10.44 trillion
Robust demand for HBM, DDR5 and server SSDs to increase in second half on AI functions
Samsung Electronics at the moment reported monetary outcomes for the second quarter ended June 30, 2024.
The Firm posted KRW 74.07 trillion in consolidated income and working revenue of KRW 10.44 trillion as favorable reminiscence market situations drove larger common gross sales worth (ASP), whereas strong gross sales of OLED panels additionally contributed to the outcomes.
Reminiscence Market Continues To Get better; Strong Second Half Outlook Centered on Server Demand
The DS Division posted KRW 28.56 trillion in consolidated income and KRW 6.45 trillion in working revenue for the second quarter.
Pushed by sturdy demand for HBM in addition to standard DRAM and server SSDs, the reminiscence market as an entire continued its restoration. This elevated demand is a results of the continued AI investments by cloud service suppliers and rising demand for AI from companies for his or her on-premise servers.
PC demand was comparatively weak, whereas demand for cellular merchandise remained strong on the again of elevated orders from Chinese language unique tools producer (OEM) prospects. Demand from server functions continued to be strong, with second quarter outcomes enhancing considerably from the earlier quarter because the Firm responded to demand for high-value-added merchandise for generative AI functions.
The Firm strengthened its management within the DDR5 market by way of the mass manufacturing of a 128GB product primarily based on 1b nanometer(nm)1 32Gb DDR5, which was developed for the primary time within the business.
Within the second half of 2024, AI servers are anticipated to take up a bigger portion of the market as main cloud service suppliers and enterprises broaden their AI investments. As AI servers geared up with HBM additionally function excessive content-per-box as regards to standard DRAM and SSDs, demand is anticipated to stay sturdy throughout the board from HBM and DDR5 to server SSDs.
With capability being focused on HBM, server DRAMs and server SSDs for AI functions, standard bit provide of cutting-edge merchandise for PC and cellular is anticipated to be constrained.
The Firm plans to actively reply to the demand for high-value-added merchandise for AI and can broaden capability to extend the portion of HBM3E gross sales. The Firm may even give attention to high-density merchandise, comparable to server modules primarily based on the 1b-nm 32Gb DDR5 in server DRAM.
For NAND, the Firm plans to extend gross sales by strengthening the availability of triple-level cell (TLC) SSDs, that are nonetheless a majority portion of AI demand, and can tackle buyer demand for quad-level cell (QLC) merchandise, that are optimized for all functions, together with server PC and cellular.
The System LSI Enterprise posted record-high gross sales for the primary half of the 12 months because it noticed earnings enhance within the second quarter resulting from elevated provide of key parts comparable to programs on chips (SoCs), picture sensors and show driver ICs (DDIs) for main flagship merchandise.
Preliminary response to the brand new SoC for wearables, which options the business’s first 3nm expertise, has been favorable and adoption of SoCs that includes this expertise by key prospects is anticipated to broaden within the second half of the 12 months. The Firm additionally plans to make sure a secure provide of the Exynos 2500 for flagship fashions.
The System LSI Enterprise will give attention to increasing the applying of 200-megapixel sensors from fundamental huge digital camera to tele cameras and plans to broaden gross sales of DDI merchandise with the beginning of mass manufacturing of latest fashions for a buyer primarily based within the US.
The Foundry Enterprise noticed improved earnings because of elevated demand throughout functions. Because of larger orders for sub-5nm expertise, the variety of AI and high-performance computing (HPC) prospects elevated twofold from a 12 months earlier. The Foundry Enterprise additionally distributed the method growth package (PDK) for 2nm Gate-All-Round (GAA) expertise to prospects forward of mass manufacturing in 2025.
Within the second half, the Foundry Enterprise expects a rebound in cellular demand and continued excessive development in demand for AI/HPC functions. Because of this, the foundry market is anticipated to expertise development general, notably in superior nodes. For 2024, on the again of full-scale mass manufacturing of second-generation 3nm GAA expertise, the Firm expects development to outpace the market.
The Foundry Enterprise plans to proceed increasing orders for AI/HPC functions and goals to extend the shopper quantity by fourfold and gross sales by ninefold by 2028 in comparison with 2023.
SDC Prepared To Meet Elevated Cellular Demand in H2, Targets Progress in Giant Panels
SDC posted KRW 7.65 trillion in consolidated income and KRW 1.01 trillion in working revenue for the second quarter.
The cellular show enterprise posted gross sales development, pushed by strong demand for flagship merchandise, together with successfully supporting new smartphone launches from key prospects. Well timed response to buyer requests with secure provide of IT OLED merchandise additionally helped larger outcomes.
Within the massive show enterprise, gross sales of high-resolution, high-refresh-rate monitor merchandise expanded, principally within the gaming monitor market, whereas TVs maintained a secure gross sales within the high-end section, pushed by elevated penetration of OLED panels.
Within the second half of the 12 months, the discharge of latest smartphones from main prospects and potential alternative demand with the adoption of AI is anticipated to result in a rise in cellular show gross sales. Nonetheless, competitors amongst panel makers is more likely to be extra intense than within the first half.
SDC is manufacturing merchandise with improved efficiency masking energy consumption, brightness, slim design and sturdiness, and can proceed to broaden gross sales and profitability by way of steady high quality insurance coverage and enhanced productiveness. For the massive show enterprise, SDC plans to extend gross sales and enhance profitability by specializing in high-value-added merchandise and introducing new displays with numerous refresh charges.
MX Enterprise To Concentrate on Flagship Smartphones and Ecosystem Merchandise for Income Progress
The MX and Networks companies posted KRW 27.38 trillion in consolidated income and KRW 2.23 trillion in working revenue for the second quarter.
Total market demand for smartphones declined sequentially, notably within the premium section, as seasonal developments continued within the smartphone market. Whereas the MX Enterprise recorded a sequential decline in income, the Galaxy S24 collection achieved double-digit year-on-year development in each shipments and income over its predecessor for each the second quarter and the primary half of the 12 months, demonstrating the continued success of the collection.
Profitability declined barely in comparison with the earlier quarter, primarily resulting from elevated prices stemming from the rising costs of important parts. However, the MX Enterprise recorded double-digit profitability for your entire first half of the 12 months.
Within the second half of 2024, general demand for smartphones is anticipated to extend year-on-year, with elevated demand for premium merchandise being pushed by rising demand for AI and the launch of latest merchandise with revolutionary options. As well as, market demand for ecosystem merchandise comparable to tablets, smartwatches and good rings is anticipated to extend. Accordingly, the MX Enterprise expects smartphone shipments to extend within the third quarter, whereas pill shipments are anticipated to sequentially stay constant.
The MX Enterprise will search income development by increasing gross sales of flagship smartphones and ecosystem merchandise, whereas additionally persevering with to make sure strong profitability by optimizing product specs, together with part standardization and pursuing operational efficiencies.
Visible Show Enterprise To Lead Progress in TV Market by Selling Distinctive Competitiveness
The Visible Show and Digital Home equipment companies posted KRW 14.42 trillion in consolidated income and KRW 0.49 trillion in working revenue within the second quarter.
Total TV market demand noticed a year-on-year improve — primarily in superior international locations — in addition to a quarter-on-quarter improve primarily resulting from international sporting occasions. Backed by differentiated launches of latest TV fashions in 2024, the Visible Show Enterprise solidified its management within the premium market by specializing in promoting strategic merchandise, comparable to Neo QLED, OLED and Life-style screens. Nonetheless, profitability decreased year-on-year as prices elevated, resulting from larger panel costs and intensified market competitors.
Within the second half of 2024, general market demand is anticipated to get well additional resulting from rising demand for QLED, OLED and bigger display TVs. The Visible Show Enterprise will capitalize on peak season demand by implementing gross sales packages centered round premium and large-size TVs. Furthermore, it should promote aggressive options like AI, safety and design together with differentiated buyer experiences enabled by Samsung SmartThings.
Moreover, the Visible Show Enterprise will search to strengthen its development momentum by strengthening its service companies.
1 Refers to Samsung’s fifth-generation 10nm class DRAM
