Samsung Electronics Publicizes Third Quarter 2021 Outcomes – Samsung International Newsroom


Document quarterly income of KRW 73.98 trillion, working revenue at KRW 15.82 trillion

International IT demand to get well in 2022; Firm to give attention to expertise management, strong profitability

Samsung Electronics at present reported monetary outcomes for the third quarter ended September 30, 2021.


Whole consolidated income was a quarterly file of KRW 73.98 trillion, a ten% improve from a yr earlier, which was the earlier excessive. Working revenue elevated 26% from the earlier quarter to KRW 15.82 trillion, the second-highest ever, as favorable market circumstances continued within the reminiscence market whereas the foundry and show companies achieved strong gross sales. The completed product companies additionally posted strong performances.


The Reminiscence Enterprise noticed a big enchancment in earnings with file quarterly bit cargo, in addition to the second-highest income for DRAM, and the Foundry Enterprise’s outcomes improved attributable to robust gross sales to international clients. For the Show Panel Enterprise, earnings rose as main smartphone clients launched new merchandise.


The Cellular Communications Enterprise noticed a sequential enchancment in earnings on the again of robust demand for brand spanking new foldable fashions and low- to mid-range smartphones in addition to development from tablets and wearables. The Networks Enterprise expanded its international enterprise, together with in North America and Japan, and continued to develop 5G community installations within the home market.


The Shopper Electronics Division noticed robust enlargement of the premium TV and Bespoke product lineup, however profitability declined attributable to rising uncooked supplies and logistics prices.


The energy in most currencies in opposition to the Korean gained, with the US greenback, specifically, had a constructive influence of roughly KRW 800 billion on working revenue in comparison with the earlier quarter.


For the fourth quarter, the Firm will give attention to assembly demand for reminiscence and system semiconductor merchandise whilst part shortages at some clients might have an effect on demand. The Firm may also preserve strong profitability within the completed merchandise companies by strengthening our management and lineups within the premium section.


For the Reminiscence Enterprise, a longer-than-expected part provide concern might must be monitored attributable to potential impacts on set builds, however the Firm will actively deal with robust elementary demand for servers from elevated investments from expertise firms. For the System LSI Enterprise, provide of SoCs and associated merchandise for mobiles telephones deliberate for 2022 is predicted to extend, whereas earnings on the Foundry Enterprise is predicted to enhance considerably by aggressively addressing the demand for superior processes.


Within the Show Panel Enterprise, the cellular panel section is predicted to realize strong outcomes on regular demand for smartphones and rising gross sales for brand spanking new purposes. The Firm is on monitor to start mass manufacturing of quantum-dot (QD) shows as deliberate.


The Cellular Communications Enterprise expects to put up strong profitability by increasing gross sales of premium merchandise akin to foldable telephones, assembly alternative demand with low- to mid-range 5G smartphones and growing gross sales of tablets and wearables.


The Shopper Electronics Division will give attention to rising gross sales of premium merchandise throughout the year-end vacation season.


In 2022, amid expectations of a restoration in international IT demand, the Firm’s part enterprise will give attention to increasing superior processes and enhancing product and expertise management. In smartphones and client electronics, the Firm will prioritize strong profitability by strengthening the premium class management. Nonetheless, uncertainties associated to part provide disruptions and COVID-19 are more likely to stay.


Within the Reminiscence Enterprise, the Firm plans to spice up price competitiveness with the mass manufacturing of 14-nm DRAM and seventh era V-NAND in addition to next-generation merchandise based mostly on industry-leading excessive ultraviolet (EUV) expertise. The System LSI Enterprise will develop its enterprise by reinforcing the SoC lineup, whereas the Foundry Enterprise is predicted to proceed to ship robust enhancements in outcomes by securing expertise management by means of 3-nm Gate-All-Round (GAA) course of and by assembly demand by means of lively investments.


For the Show Panel Enterprise, the portion of OLED panels out there is predicted to extend with larger penetration of 5G smartphones because the Firm intently screens provide of elements akin to DDIs. For the massive panel enterprise, Samsung will attempt to safe management within the premium TV section with QD shows.


Within the Cellular Communications Enterprise, the Firm will attempt to enhance gross sales and profitability by strengthening its place within the premium market with increasing gross sales of flagship merchandise together with foldable telephones in addition to providing a stronger lineup of 5G smartphones for the mass market. The Firm may also proceed to bolster the pill and wearables enterprise and develop industry-leading expertise. The Networks Enterprise will proceed to boost {hardware} with customized 5G chips and strengthen software-based virtualization options for future development because the Firm pursues continued enlargement abroad.


The Shopper Electronics Division expects total demand to weaken, however will give attention to proactively capturing rising demand for premium TVs and growing international gross sales of Bespoke merchandise.


The Firm’s capital expenditures within the third quarter reached KRW 10.2 trillion, together with KRW 9.1 trillion spent on semiconductors and KRW 0.7 trillion on shows. Whole capital expenditures up to now in 2021 have been KRW 33.5 trillion, together with KRW 30 trillion for semiconductors and KRW 2.1 trillion for shows.



Semiconductor Led by Server DRAM Gross sales; Foundry To Proceed Document Quarterly Income  

The Semiconductor companies posted KRW 26.41 trillion in consolidated income and KRW 10.06 trillion in working revenue within the third quarter.


For the Reminiscence Enterprise, the general worth state of affairs remained favorable and the Firm set a brand new file for quarterly bit cargo and the second-highest income for DRAM, backed specifically by vital development in server gross sales.


For DRAM, server demand continued to develop because the adoption of a brand new, high-core CPU was launched within the first half of the yr. PC demand from end-users has additionally been strong attributable to adjustments akin to workplaces choosing hybrid work patterns, and cellular demand restoration has turn out to be extra seen because of releases of recent merchandise by main producers and the bottom impact of the earlier quarter.


Regardless of a resurgence of COVID-19 in main manufacturing international locations and part provide points that led to disruptions in set builds, Samsung actively responded to DRAM demand by flexibly working its product combine.


For NAND, server SSDs demand recovered together with elevated investments by main server clients, and demand from information facilities for high-capacity merchandise was robust based mostly on the high-capacity pattern spurred by new CPU adoptions. Cellular demand has been strong as a result of launch of recent fashions.


Trying to the fourth quarter for DRAM, the basic demand for server is predicted to remain robust because of the brand new CPU adoption and enlargement of datacenter investments. Nonetheless, Samsung will preserve monitoring the impacts of the part provide points on set builds.


For Cellular, producers are more likely to proceed to launch new 5G fashions however there are possibilities that development of buying demand could possibly be restricted attributable to stock changes at some clients together with impacts of provide chain points. For PC, set construct development to remain related in comparison with the final quarter.


As for NAND, server SSD demand is predicted to be strong as enterprise actions normalize and continued development in enterprise IT budgets and the high-capacity pattern for server SSD.


For the outlook subsequent yr, whereas macro uncertainties, such because the timing of mitigating part provide points, influences of “Dwelling with COVID-19” insurance policies amid growing vaccination charges and uncooked materials pricing points, make it troublesome to supply particular steerage, server and PC demand is predicted to be strong with the pattern towards high-capacity following the increasing new CPU adoption and continued development of enterprise IT investments. For Cellular, the Firm expects cargo development and the excessive capability pattern to proceed with the rise in low-end to mid-range 5G fashions, and likewise as producers launch merchandise with new kind components.


Samsung will proceed to develop the portion of 15-nm DRAM and 128-layer V-NAND, proactively deal with the server market the place demand is more likely to develop because of new adoptions of DDR5 with rising penetration of a excessive core CPU, and likewise preemptively safe demand for NAND answer merchandise.


Furthermore, whereas increasing mass manufacturing of 14-nm DRAM and 176-layer V-NAND, the Firm will proceed to strengthen its market competitiveness by way of price reductions by means of next-generation processes and merchandise.


The System LSI Enterprise noticed its earnings enhance within the third quarter because of elevated demand for SoCs/DDIs as main cellular clients launched new merchandise. Within the third quarter, the Firm launched the {industry}’s first 200-megapixel picture sensor for cell phones and the {industry}’s smallest twin pixel picture sensor.


Within the fourth quarter, the Firm expects earnings to proceed to extend attributable to expanded provide of SoCs and associated merchandise for launches of recent 5G smartphones in 2022.


The System LSI Enterprise will enhance its efficiency subsequent yr by increasing provide of 5G SoC merchandise for the quantity zone in addition to for brand spanking new flagship merchandise that characteristic enhanced GPU efficiency.


The Foundry Enterprise noticed its earnings enhance sequentially, posting file income for the quarter as provide of key superior course of merchandise elevated. The Firm additionally secured a steady income base by profitable new orders for superior processes from international clients.


Within the fourth quarter, demand for superior and mature processes appears to stay robust, and the Firm expects to put up a brand new quarterly file for income, growing greater than 10% from the third quarter. The Firm plans to proceed its technological management by finishing the design of first-generation 3-nm merchandise based mostly on GAA and creating second-generation 3-nm GAA course of.


In 2022, the foundry market is predicted to stay tight attributable to excessive silicon consumption for 5G in cellular and powerful GPU-led demand for HPCs. The Firm plans to enhance earnings considerably by increasing provide of superior processes of sub 5-nm course of in addition to growing gross sales to international clients and normalizing costs for sustainable future funding.



Show Earnings Enhance; Sturdy Demand for OLED To Persist 

The Show Panel Enterprise posted KRW 8.86 trillion in consolidated income and KRW 1.49 trillion in working revenue for the third quarter. Total show earnings improved in comparison with the earlier quarter primarily as a result of robust gross sales of small to mid-sized OLED panels regardless of weak efficiency within the massive show enterprise.


Cellular show earnings rose amid favorable seasonal results, pushed by demand for newly launched merchandise from main smartphone clients. Particularly, gross sales enlargement for high-end merchandise together with foldable telephones contributed to the highest-ever third quarter revenue. Nonetheless, the massive show enterprise continued to put up losses primarily attributable to worth declines in LCD panels.


Waiting for the fourth quarter, for cellular shows, Samsung forecasts robust demand for brand spanking new smartphones to proceed and gross sales for laptops and gaming gadgets to develop throughout the vacation season. Thus, it expects the earnings to stay strong for the fourth quarter. Within the massive show enterprise, because the Firm is all set to start mass manufacturing of QD shows, it’ll give attention to the profitable introduction of its first QD merchandise to the market.


In 2022, a positive surroundings for the OLED enterprise is predicted to proceed, because of the restoration of smartphone market demand and the upper adoption of 5G telephones. Furthermore, gross sales of purposes akin to laptops and tablets are forecast to develop in earnest. Samsung will attempt to show such momentum into a brand new development engine for the Firm. Additionally, amid issues over provide of some elements akin to DDIs, the Firm will intently monitor its provide chain and take preemptive actions to potential dangers to make sure uninterrupted product supply.


For the massive shows, Samsung will full the enterprise reorganization from LCD to QD shows as deliberate and give attention to securing management within the premium TV section with QD shows.



Cellular Earnings Enhance on Premium and Mass-Market Lineup Gross sales

The IT & Cellular Communications Division posted KRW 28.42 trillion in consolidated income and KRW 3.36 trillion in working revenue for the third quarter.


Total market demand elevated from the earlier quarter attributable to assuaging influences of COVID-19. Regardless of part provide constraints throughout the {industry}, the Cellular Communications Enterprise noticed income improve from the second quarter. Smartphone gross sales elevated in comparison with the earlier quarter because of robust gross sales of flagship fashions together with Galaxy Z Fold3 and Galaxy Z Flip3, in addition to enhanced mass-market lineup. Machine Ecosystem merchandise akin to wearables have additionally continued materials development. Whereas elevated advertising investments for the foldable class had some impact on profitability, the Firm secured strong double-digit working revenue margin.


Waiting for the fourth quarter, market demand is forecast to extend quarter-on-quarter attributable to robust year-end seasonality, nevertheless, uncertainties over part provide are more likely to persist. The Firm will attempt to keep up a double-digit working revenue margin by additional increasing premium smartphone gross sales with the Galaxy Z Flip3 Bespoke Version whereas additionally persevering with gross sales momentum of the Galaxy S collection. On the identical time, the Firm will proactively goal alternative demand with aggressive mass-market 5G lineup, and improve gross sales of Machine Ecosystem merchandise akin to wearables, PCs and tablets.


In 2022, amid uncertainties over COVID-19, the smartphone and wearable markets are anticipated to proceed rising. The Cellular Communications Enterprise goals to strengthen its management within the premium section by driving the mainstreaming of the foldable class offering progressive expertise and differentiated expertise akin to Galaxy Z Flip3 Bespoke Version. With these efforts, the Firm will attempt to realize strong efficiency by strengthening mass-market 5G lineup and Machine Ecosystem enterprise.


For the mid-to-long time period future development, the Firm will proceed its efforts to develop superior applied sciences and collaborate with main international firms.


As for the Networks Enterprise, the Firm expanded its enterprise abroad together with North America and Japan, and actively responded to 5G enlargement in South Korea. The Firm will proceed with its community rollouts in Korea whereas exploring new enterprise alternatives abroad together with North America, Japan, South West Asia and Europe. By enhancing the in-house 5G chip and advancing 5G virtualization options, the Firm will attempt to strengthen its product competitiveness and solidify foundations for development.



CE Income Lower Attributable to Larger Prices, Regardless of Strong Gross sales of Premium Merchandise

The Shopper Electronics Division, comprised of the Visible Show and Digital Home equipment companies, recorded KRW 14.10 trillion in consolidated income and KRW 0.76 trillion in working revenue within the third quarter.


Regardless of robust gross sales of its premium TVs and Bespoke house equipment merchandise, the Firm recorded decrease earnings each quarter-on-quarter and year-on-year, attributable to a big rise in materials and logistics prices.


Waiting for the fourth quarter, the Firm expects larger demand for TVs quarter-on-quarter attributable to year-end seasonality. Nonetheless, year-on-year demand is predicted to lower as extra areas undertake “Dwelling with COVID-19” insurance policies and pent-up demand results proceed to fade. Samsung plans to reply by specializing in premium product gross sales, with optimized year-end promotions for each its offline and on-line channels.


In 2022, the Firm expects the expansion pattern to proceed to gradual, as customers more and more spend much less time at house. Nonetheless, a heightened curiosity in custom-made, premium way of life merchandise is predicted to stay, which the Firm plans to actively deal with. Additional product combine enhancement, international market enlargement, retail and advertising optimization and strengthened SCM capabilities are key components of Samsung’s plan.


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