Samsung’s profit fell by 34%; Recession in the chip industry

Samsung has published its preliminary earnings report for the last quarter of 2023. The report shows that although the company’s business profit has increased compared to the third quarter of the same year, it is still 34% lower than in 2022.

According to Official informationSamsung’s total revenue in the fourth quarter of 2023 was equal to 67.78 trillion won (about $51 billion), and the profit obtained during the same period was announced as 2.82 trillion won (2.11 billion dollars).

Samsung’s total annual revenue last year reached 259 trillion won (equivalent to 194 billion dollars), of which only 6.57 trillion won (4.92 billion dollars) was net profit.

According to Samsung’s statement, the revenue and profit achieved in the fourth quarter were higher compared to the third quarter of 2023. However, when we compare with the previous year’s figures, we notice a 34.4% drop compared to 2022’s profit of 4.3 trillion won ($3.22 billion).

Samsung owes most of its revenue and profit growth to the increase in the price of RAM and the sale of advanced displays, including TVs, and expects to improve this situation in the first quarter of 2024 by selling its new products, including the Samsung Galaxy S24 series.

Samsung is also counting on the productive artificial intelligence market and plans to increase its share of the market for advanced chips used for cloud computing and the application of artificial intelligence-based tools in smartphones, televisions, home appliances and other devices.

Despite continued economic problems in 2024 that have caused stagnation in various markets, Samsung expects its financial performance to improve in the first half of the year and see strong growth in the second half.

In 2023, the Koreans have spent billions of dollars to develop their chip infrastructure and made investments to improve the production capacity of DDR5 RAM and HBM and other advanced chips, an example of which was the signing of a cooperation agreement with ASML to use advanced EUV equipment.

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