Quarterly income of KRW 71.92 trillion, working revenue at KRW 6.61 trillion
Global IT demand and enterprise setting anticipated to enhance in H2 based mostly on demand for AI purposes
Samsung Electronics in the present day reported monetary outcomes for the primary quarter ended March 31, 2024.
The Company posted KRW 71.92 trillion in consolidated income on the again of sturdy gross sales of flagship Galaxy S24 smartphones and better costs for reminiscence semiconductors. Operating revenue elevated to KRW 6.61 trillion because the Memory Business returned to revenue by addressing demand for prime value-added merchandise. The Mobile eXperience (MX) Business posted greater earnings and the Visual Display and Digital Appliances companies additionally recorded elevated profitability.
The weak point of the Korean gained in opposition to main currencies resulted in a optimistic affect on company-wide working revenue of about KRW 0.three trillion in comparison with the earlier quarter.
The Company’s complete capital expenditures within the first quarter stood at KRW 11.three trillion, together with KRW 9.7 trillion for the Device Solutions (DS) Division and KRW 1.1 trillion on Samsung Display Corporation (SDC). Spending on reminiscence was targeted on services and packaging applied sciences to deal with demand for High Bandwidth Memory (HBM), DDR5 and different superior merchandise, whereas foundry investments had been focused on establishing infrastructure to fulfill medium- to long-term demand. Display investments had been primarily made in IT OLED merchandise and versatile show applied sciences.
Memory Business Returns to Profit; Second Quarter Expected to Remain Solid on AI Demand
The DS Division posted KRW 23.14 trillion in consolidated income and KRW 1.91 trillion in working revenue for the primary quarter.
For servers and storage, demand for generative AI confirmed stable developments, whereas demand for DDR5 and high-density SSDs remained sturdy. For PCs and cellular total, content-per-box continued to develop for each DRAM and NAND, and demand remained strong on the again of energetic sell-in pushed primarily by Chinese cellular OEM prospects.
The Memory Business returned to revenue because it achieved qualitative development by addressing the demand throughout servers, storage, PC and cellular, specializing in high-value-added merchandise equivalent to HBM, DDR5, server SSDs and UFS 4.0., together with the rise in ASP.
Looking forward to the second quarter, the business is predicted to stay stable, led primarily by demand for generative AI.
For servers and storage, the continual enhance within the provide of AI servers and subsequent growth of related cloud companies will enhance demand not just for HBM but in addition for standard servers and storage options. Demand for cellular is predicted to be steady within the quarter, whereas PC prospects are predicted to be affected by gradual seasonality, making them prone to regulate their inventories forward of recent product launches within the second half of the 12 months.
The Company began mass manufacturing of HBM3E 8H this month and plans to mass produce HBM3E 12H merchandise and a 128GB product based mostly on 1b nanometer1 (nm) 32Gb DDR5 throughout the second quarter. The Company additionally began mass manufacturing of V9 NAND for the primary time within the business this month.
In the second half of 2024, enterprise circumstances are anticipated to stay optimistic with demand — primarily round generative AI — holding sturdy, regardless of continued volatility referring to macroeconomic developments and geopolitical points.
For HBM, the Company will proceed to extend provide so as to reply to rising demand for generative AI. In DRAM, the Company plans to speed up 1b nanometer-based 32Gb DDR5 provide with sooner ramp-up speeds and additional strengthen its competitiveness within the high-density DDR5 module market. For NAND, the Company plans to boost know-how management by mass producing quad-level cell (QLC) for V9 within the third quarter.
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