Samsung is back on the road to success thanks to the high demand for chips of all kinds. In the smartphone area, on the other hand, you had to give up some feathers, but that too is complaining at a high level. Overall, it looks rosy with an increase in sales of 20 percent compared to the previous year.
The fact that the smartphone industry in particular cannot grow as strongly as desired is due to components that Samsung cannot manufacture it itself. Because this is where the global delivery problems for certain components also apply to Samsung. Sales fell compared to the previous quarter, but the bottom line is still a little better than in the same quarter of the previous year.
One of the winners in the last quarter was the consumer division, which has to struggle with tough conditions, which is why the profit margin is, as usual, rather small. Neo-QLED and premium devices are again responsible for the growth.
The star at Samsung is and will remain the semiconductor division, which is more in demand than ever in the current times. High demand for all types of DRAM, which could also be sold at a higher price, laid the foundation for growth. How important the division is for Samsung is not only evident in the turnover, which makes up almost half of the group, but above all in the profit: This division contributes three quarters of the total group profit.
The display business, which is also part of the division, has become significantly more profitable thanks to OLEDs, with approximately the same sales, and should continue to do so in the future. In the second half of the year, the semiconductor business will switch from 14 nm DRAM to 14 nm DRAM, which will be partially exposed with EUV for the first time. NAND goes from the sixth to the seventh generation of V-NAND, 176 layers instead of 128 layers are now available for SSDs.
For third-party customers, the output in the S5 factory is increased, where 5-nm and 4-nm chips are to be produced in larger numbers. Operations in the Austin factory, which was taken offline due to the winter storm in Texas, have normalized and should help meet the high demand in the second half of the year