Shulou(Shulou.com)11/24 Report--

March 28, the impact of the decline in consumer electronics demand on Samsung Electronics, South Korea's largest memory chip maker, continues. Some analysts have expected shipments of NAND flash memory and DRAM to fall by more than 10% in the first quarter of this year. Samsung Electronics' chip business will also suffer a loss, resulting in an operating loss of 4.1 trillion won in its device solutions division.

Although the chip business is only one of the many businesses under Samsung Electronics, and the device Solutions Division is only a division under Samsung Electronics, because the chip and its device solutions department are an important source of profits for Samsung Electronics, the loss is bound to affect Samsung Electronics' overall profits.

The latest foreign media reports show that in the context of the continued deterioration of the semiconductor industry, some analysts have given pessimistic expectations that Samsung Electronics, which has long ranked first among South Korean enterprises in operating profit, will fall to No. 5 in the first quarter.

According to the report, Samsung's operating profit in the first quarter of this year is expected to fall 88% from a year earlier to 1.64 trillion won, or about $1.26 billion.

As previously expected by analysts, Samsung Electronics' operating profit in the first quarter is expected to decline sharply compared with the same period last year, related to the poor semiconductor business. As corporate customers reduce inventory, semiconductor shipments and prices both decline, resulting in a sharp decline in operating profits in the semiconductor and device solutions division.

Another semiconductor manufacturer, SK Hynix, is not expected to be optimistic, with an operating profit of 2.86 trillion won in the first quarter of last year and a loss in the first quarter of this year.

Unlike the decline in operating profits of semiconductor manufacturers, South Korean automakers are expected to perform well in the first quarter of this year. Hyundai is expected to make an operating profit of 2.55 trillion won in the first quarter, making it the highest operating profit company in South Korea's KOSPI index. Sister brand Kia's operating profit is expected to rise to 2.03 trillion won, jumping to second place from 10th in the same period last year.

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