Samsung’s Q1 2020: Semiconductor & Memory Business Grew, Display Business Declined

- Advertisement -
  • Looking ahead to the second quarter, Samsung Electronics expects the memory business to remain solid
  • The company informed that earnings from OLED screens are likely to be weaker due to a stagnant smartphone market

Samsung Electronics has reported financial results for the first quarter that ended on 31 March 2020. The company’s total revenue was KRW 55.33 trillion, a decrease of 7.6 per cent from the previous quarter mainly due to weak seasonality for the its display business and consumer Electronics Division and partially due to effects of COVID-19. From a year earlier, revenue rose 5.6 per cent due to increasing demand for server and mobile components.

“Operating profit was lower by KRW 0.7 trillion quarter-on-quarter to KRW 6.45 trillion, affected by the same factors that weighed on revenue with a corresponding decrease in operating margin, even though memory earnings were higher. Compared with a year earlier, operating profit increased by KRW 0.2 trillion with an improved product mix in the mobile business and additional diversification of the Company’s customer base in mobile OLED,” read Samsung’s official statement.

Samsung’s semiconductor earnings improve

Samsung’s semiconductor businesses posted KRW 17.64 trillion in consolidated revenue and KRW 3.99 trillion in operating profit in the first quarter.

- Advertisement -

The company it saw good demand of DRAM for datacenters. For mobile, decrease in set demand due to effects of COVID-19 and seasonality was offset by expanded adoption of high-density products by major customers. For PC, demand remained steady on the back of the increase in virtual meetings.

“For NAND, mobile demand was relatively solid due to the expansion of products from major customers adopting high-density storage greater than 128GB. Demand for server SSD, mainly for datacenters, continued to grow alongside rising demand for high-volume content,” Samsung informed.

The company said that it will start mass-producing 5nm products this year and focus on the development of GAA 3nm process.

Samsung’s display earnings decline

Samsung’s display panel business posted KRW 6.59 trillion in consolidated revenue and KRW 0.29 trillion in operating loss for the first quarter. It posted an operating loss due to sales decline of mobile displays.

“Mobile display earnings saw a profit decline because of slower sales and lower fab utilization amid weak seasonality. For large displays, the operating loss narrowed, helped by short-term market factors including a smaller drop in ASP and favorable foreign exchange movements,” read Samsung’s official statement.

Looking ahead to the second quarter, Samsung expects a further drop in mobile display earnings due to falling demand in the US and Europe, driven by the impact from COVID-19.

- Advertisement -

Most Popular Articles

Mukul Yudhveer Singh
Mukul Yudhveer Singh
Mukul Yudhveer Singh is an Editor at EFY. He’s an experienced business journalist who is both an enthusiast and a cynic of technology. Believes in data, as well as hunch-based journalism. He defines journalism as- reporting facts which help the audience take their own decisions, not ones that influence them!

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Crompton Greaves Starts Kitchen Appliance Manufacturing In Vadodara

0
This move aims to boost product quality and operational efficiency, enhancing the delivery of innovative, high-quality kitchen solutions to meet growing consumer demands. Crompton Greaves...

Advancing  Manufacturing Sector With New Refrigerator Plant

0
By incorporating advanced backward integration processes, this plant sets to redefine industry standards, promising improved efficiency and reduced environmental impact, while also boosting local...

EV Sales In India Fall Face First From March to April 2024

0
Electric Vehicle sales, across segments, have fallen short of the promise the sector was witnessing over the last few months. Despite the extension of FAME scheme for...

Buzz

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

Progress And Challenges In Autonomous Commuting

0
Despite over a decade of technological advancements and testing in cities like Phoenix and San Francisco, robotaxis still faces significant hurdles.  Companies like Waymo, Cruise,...

New EV Policy Offers Incentives For Plant And Machinery Investments

0
Investments in creating physical infrastructure such as plants, machinery, charging stations, and other assets developed or acquired by companies will qualify for incentives under...

Important Sectors

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

Progress And Challenges In Autonomous Commuting

0
Despite over a decade of technological advancements and testing in cities like Phoenix and San Francisco, robotaxis still faces significant hurdles.  Companies like Waymo, Cruise,...

New EV Policy Offers Incentives For Plant And Machinery Investments

0
Investments in creating physical infrastructure such as plants, machinery, charging stations, and other assets developed or acquired by companies will qualify for incentives under...

Battrix’s Dr Yashodhan Gokhale Joins JSW Energy As VP

0
Interestingly, he had started his professional innings in the role of a Research Chemist with Sudarshan Chemical Industries Dr Yashodhan Pramod Gokhale has joined JSW...

Zevo India Aims For 50% Solar-Powered EVs In Logistics By FY25

0
The company intends to power its electric fleet using solar energy. Solar-powered vehicles, as implied by the name, are electric vehicles that use solar...

Manufacturing

Imec-Led European Labs To Get $2.7B From Chips Act Funding

0
Europe's chip revolution gains momentum with a €2.5 billion investment in cutting-edge pilot production line for sub-2nm technologies, aiming to elevate domestic production and...

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...
Siemens and CSA

Siemens Limited Announces ₹1000 Crore Capex

0
In a statement, Siemens announced that it is expanding its factory operations in Goa to address the rapidly growing demand for essential industry components. Siemens...