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

CTOnews.com July 12 news, according to BusinessKorea, the contract manufacturing industry sources recently revealed that Samsung Electronics Semiconductor OEM Division, including the system LSI department, is expected to have sales of 4.437 trillion won (CTOnews.com Note: about 24.714 billion yuan) in the second quarter (April-June) and an operating loss of 710 billion won (currently about 3.955 billion yuan).

▲ Tu Yuan Pexels in the same period last year, Samsung's semiconductor foundry business had revenue of 6.892 trillion won (currently about 38.388 billion yuan) and operating profit of 608 billion won (currently about 3.387 billion yuan). This means that in the second quarter of this year, the division's business revenue will decline by 35.6% compared with the same period last year, and profits will turn from profit to loss. In addition, the division lost 299 billion won (currently about 1.665 billion yuan) in the first quarter, which means it has lost more than 1 trillion won (currently about 5.57 billion yuan) in the first half of this year.

Analysts point out that the decline in Samsung's semiconductor contract manufacturing business is largely due to the slow recovery of the smartphone industry. As overall demand for smartphones has been sluggish, corporate customers have been unexpectedly slow to consume parts inventory, especially as they are reducing orders for image sensors and display-driven integrated circuits. The decrease of customer orders leads to a decline in sales in the LSI department of the system, and the OEM department is also faced with the problem of increased cost burden due to the decrease in the utilization rate of the production line.

Samsung took the lead in mass production of 3nm chips, and its 3nm ultramicro manufacturing process began to be reflected in the company's second-quarter results, but that didn't stop the company from widening its deficit because of the difficulty of getting customers because of the economic downturn and high production costs.

CTOnews.com previously reported that Samsung Electronics released its second-quarter earnings forecast on July 7, in which second-quarter operating profit was 600 billion won (currently about 3.342 billion yuan), down 95.7 percent from a year earlier.

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