Quarterly income of KRW 74.07 trillion, working revenue at KRW 10.44 trillion
Strong demand for HBM, DDR5 and server SSDs to increase in second half on AI purposes
Samsung Electronics at present reported monetary outcomes for the second quarter ended June 30, 2024.
The Company posted KRW 74.07 trillion in consolidated income and working revenue of KRW 10.44 trillion as favorable reminiscence market circumstances drove increased common gross sales value (ASP), whereas strong gross sales of OLED panels additionally contributed to the outcomes.
Memory Market Continues To Recover; Solid 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.
Driven by robust 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 cell merchandise remained strong on the again of elevated orders from Chinese authentic gear producer (OEM) prospects. Demand from server purposes continued to be strong, with second quarter outcomes bettering considerably from the earlier quarter because the Company responded to demand for high-value-added merchandise for generative AI purposes.
The Company strengthened its management within the DDR5 market by means 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.
In 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 outfitted with HBM additionally function excessive content-per-box on the subject of standard DRAM and SSDs, demand is anticipated to stay robust throughout the board from HBM and DDR5 to server SSDs.
With capability being focused on HBM, server DRAMs and server SSDs for AI purposes, standard bit provide of cutting-edge merchandise for PC and cell is anticipated to be constrained.
The Company 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 Company will even give attention to high-density merchandise, reminiscent of server modules primarily based on the 1b-nm 32Gb DDR5 in server DRAM.
For NAND, the Company 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 deal with buyer demand for quad-level cell (QLC) merchandise, that are optimized for all purposes, together with server PC and cell.
The System LSI Business posted record-high gross sales for the primary half of the yr because it noticed earnings enhance within the second quarter on account of elevated provide of key parts reminiscent of methods on chips (SoCs), picture sensors and show driver ICs (DDIs) for main flagship merchandise.
Initial 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 yr. The Company additionally plans to make sure a secure provide of the Exynos 2500 for flagship fashions.
The System LSI Business will give attention to increasing the applying of 200-megapixel sensors from essential huge digicam 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 Business noticed improved earnings because of elevated demand throughout purposes. Due to increased orders for sub-5nm expertise, the variety of AI and high-performance computing (HPC) prospects elevated twofold from a yr earlier. The Foundry Business additionally distributed…
