Samsung lost 9 months by 1269 trillion, South Korean people cry for help: who can save mountains and rivers?
There used to be a saying circulating on the Internet that Koreans can't avoid three things in their lives: death, taxes, and Samsung. As one of the largest chaebol companies in South Korea, Samsung's activities in various fields have an important impact on the Korean economy. It can be said that Samsung accounts for almost a quarter of South Korea's economy.
Samsung's business is very broad, including mobile phones, home appliances, semiconductors, and many other fields. In the field of semiconductors, Samsung has a huge influence and is one of the largest semiconductor companies in South Korea and the world. For a long time, the world's highest-grossing semiconductor companies were Samsung or Intel in the United States.
In the field of memory chips, Samsung has always ranked first in the world. More than 30 years ago, Samsung developed 64MBDRAM memory chips, becoming the world's largest DRAM manufacturer. In 1999, Samsung developed the world's first 1GBNAND flash memory, and in 2002, it completed large-scale mass production and shipment, and Samsung surpassed Japan's Caesars to become the world's largest memory chip company.
According to relevant data, in 2017, Samsung accounted for 45% of the global share of memory chip companies, and it can be said that it is firmly in the top spot of memory chips, even SK hynix, which is also a Korean company, has failed to surpass Samsung. Many people believe that with Samsung's scale and volume, if there is no transformative technological change, then Samsung's operation will be difficult to solve.
But what people didn't expect was that since December 2022, Samsung's net profit has been declining, with a decline of more than 95%, directly breaking Samsung's 14-year record. Even the South Korean people began to panic and kept shouting: Who will save Samsung?
According to Samsung's previously released financial data, Samsung's net profit in the first and second quarters of this year decreased by more than 90% year-on-year, of which the semiconductor business suffered a cumulative loss of 8 in the first two quarters94 trillion won. Some time ago, Samsung announced its latest financial data, and Samsung's turnover in the third quarter was 674 trillion won, down 1221% and operating profit of 243 trillion won, down more than 77 percent year-on-year57%。Samsung's cumulative losses in the first three quarters totaled 126900 million won, about 70 billion yuan.
You must know that this kind of loss is not the same as the loss caused by the decline in market capitalization, and the loss caused by the decline in market value is more like a volatility loss, although the impact is not small, but it does not actually need to take money out of your pocket. This kind of loss is a real business loss, and every penny is really out of the pocket.
From all aspects, the main reasons for Samsung's heavy losses are the following: changes in the market environment, the impact of the ban on the production of goods in the United States, and increased competition. First of all, from the perspective of the market environment, since the second half of last year, the overall demand for the chip market has continued to decline, which in turn has affected the decline of chips, some chips have been directly lowered, and some have fallen by more than 90%. In this case, Samsung's chips** have naturally also been affected.
More importantly, Samsung executives believe that global chip demand will inevitably recover further, so other semiconductor companies have chosen to reduce production, but Samsung still maintains the previous production scale. This means that a large number of chips produced by Samsung cannot be sold and can only be stacked in warehouses, which not only leads to a large amount of working capital"Sealed", which also led to Samsung's warehousing costs continuing to rise. According to relevant statistics, Samsung Semiconductor's current inventory is more than 180 billion yuan.
Since the beginning of 2019, the United States has continuously included Chinese companies in the entity list, and then began to revise chip rules several times to restrict chip shipments, and memory chips are also one of the restricted shipments. In addition, the United States previously restricted Samsung's factories in Chinese mainland from introducing advanced equipment to expand production.
According to relevant statistics, Samsung has more than half of the market share in the Chinese market, and in the case of limited high-end chips, Samsung's chip shipments have declined, resulting in Samsung's revenue and net profit have also been affected.
The latter is the rapid growth of China's memory chip companies, according to the information released by Yangtze River Storage, the number of layers of memory chips in China has reached more than 200 layers. With the rapid development of Chinese storage companies such as Yangtze River Storage and Changxin Storage, it can basically meet the domestic demand for memory chips.
According to relevant data, due to the loss of China's market share, Samsung's stock of chips increased by 40%, and the positive loss reached more than 46 billion.
There is no doubt that Samsung is like a stone on the top of a mountain, it has begun to go on and on"Roll down the hill"。