With the rise of domestic memory chips, Samsung's profits plummeted by 96, a new low in 14 years
In April this year, Samsung announced its first-quarter earnings report, which showed that the operating profit in the first quarter was 640.2 billion won, up from 14.2 billion won in the same period last yearThe 12 trillion won fell 95 percent, the worst since 2009. Net profit was 157 trillion won, down 861%。
Samsung's memory chip division lost a total of 45 percent in the first quarter800 million won (about 23.6 billion yuan), which is also the first time in 14 years that Samsung's semiconductor division has lost money.
However, the first quarter was the trough for Samsung, and the next quarter is the best result?In fact, Samsung's performance in the second quarter is still not satisfactory.
Samsung's profit in the second quarter is expected to fall 96% year-on-year, and operating profit will fall to 555 billion won (about 4.).$2.7 billion), which was the lowest quarter in more than 14 years.
And why it has fallen so much, the reason is still the memory chip business, with the memory chip ** continue**, as well as high inventory, Samsung's chip division is expected to lose about 3 trillion to 4 trillion won in the second quarter.
In fact, not only Samsung, but also Micron, SK hynix, Western Digital, and Pantsir, these big storage companies, are also impossible not to lose money, all of which suffered big losses in the first quarter and are still losing money in the second quarter.
There are many reasons for this result, but one of them is what I want to focus on some time ago, that is, the increase in domestic memory tablets has broken the pricing power of foreign memory tablets, forcing everyone to continue to reduce prices, and eventually causing huge losses.
Before 2017, the domestic production of memory chips was 0, and at that time, memory chips were monopolized by foreign manufacturers, so they could all unite to control the **, regardless of the inventory and market level, they could not reduce the price, and even from time to time there was a fire, power outage, snow disaster, etc., which affected the production capacity, so the ** of memory chips went up.
As the world's largest chip consumer market, China cannot produce chips by itself, but can only buy chips, which is more expensive, but China's own technology is not like this.
But after 2017, we got the domestic memory chip, and in the following years, the domestic memory chip sprung up, until the world premiere of the 232-layer 3DNAND flash memory of Yangtze River Storage, and the memory chip monopolized by foreign manufacturers plummeted.
In the field of NAND flash memory, the higher the number of layers, the higher the storage density, and the larger the unit capacity of the memory chip, the lower the cost. In 2023, YMTC's 232-layer 3DNAND flash memory will continue to ship, resulting in a continuous decline in SSD products, with the international brand SSD1TB reaching more than 2,000 yuan, and now its localized price has reached 200 yuan, a decrease of 90%.
And domestic memory chips are so sluggish, international manufacturers also have to follow suit, because if you don't follow the trend to buy domestic solid-state drives, the market share will continue to decline, and you may eventually lose this market.
In the end, you fell, I also fell, after everyone fell, these international manufacturers continued to lose money, after all, it is the cost, we can't fight the national manufacturers.
Many people say that before Chinese manufacturers learn a certain technology, if they import from abroad, those products are sky-high. When Chinese manufacturers learn, the best of those products will immediately be like cabbage, as evidenced by memory chips.
And this is one of the reasons why the United States has been suppressing domestic chips, because at present, the United States monopolizes 50% of the global chip market, and the whole world makes money.