There is a joke in South Korea that the three things that Koreans can't get rid of in their lives are: taxes, death, and Samsung. From this sentence, it is not difficult to see that Samsung has an important influence in South Korea.
Judging from the published data, Samsung's total output accounts for about 20% to 25% of South Korea's total GDP, which can be called the backbone of South Korea's economy. Samsung's industry has penetrated into various fields in South Korea, and it can be said that without Samsung, South Korea's economy would inevitably be rapid.
As a giant enterprise in South Korea, Samsung is also very famous in the international market, and it can be called a well-known enterprise in many fields, such as mobile phones, screens, memory chips, wafer manufacturing and other fields that we are familiar with, Samsung basically has a lot of influence.
For example, Samsung's smartphone shipments have long been the world's first, surpassing Huawei, Apple and other well-known companies, and Samsung's memory chips have long occupied the largest market share in the global market, surpassing SK hynix, which is also a South Korean company, and Micron, the American chip giant. In the field of chip foundry, Samsung is also the world's second generation manufacturer after TSMC, accounting for about 34% of the global chip foundry market share.
Judging from the financial report data released by Samsung, Samsung's net profit in the first and second quarters of this year exceeded 90%, and Samsung's net profit in the third quarter of this year also exceeded 77%. Even foreign media said: Samsung can't sit still at all.
Let's take a look at what caused Samsung's net profit**. The person in charge of Samsung explained this as follows: due to the global economic downturn, consumer electronics products such as mobile phones and computers will begin to ship ** from the beginning of 2023, which will lead to a decrease in chip market demand and chip **, and major chip manufacturers have begun to reduce the number of chip foundries, resulting in Samsung's mobile phones, screens, chip foundries, memory chips and other businesses being affected.
There is actually some truth in these words, Samsung's revenue and net profit ** are related to these, but you must know that industries like Samsung, which are deeply involved in the upstream and downstream of the industrial chain, should be relatively affected by market fluctuations, and can also be adjusted quickly. However, compared with semiconductor giants such as Intel, Nvidia, and TSMC, as well as mobile phone giants such as Apple and Huawei, Samsung seems to have a bit of a serious net profit.
This is actually a misjudgment of Samsung's market changes, at first Samsung believed that the reduction in chip demand was only temporary, and the demand for chips in emerging industries such as new energy vehicles and artificial intelligence was not small, and the demand for chips in the overall chip market would not be affected for a long time.
It is precisely because of this misjudgment that Samsung did not reduce when other mobile phone manufacturers reduced mobile phone production capacity, and Samsung did not reduce chip production when Nvidia, Intel, Qualcomm and other manufacturers reduced chip production. As a result, Samsung produced a large number of chips, but they could not be sold, and they could only be piled up in warehouses.
According to the data released by Samsung, the inventory of Samsung chips has skyrocketed by about 40%. This means that Samsung not only cannot recover the money invested in chip production, but also faces the increase in storage costs caused by the storage of a large number of chips, and Samsung will naturally have a net profit.
In addition to this, the US chip ban restricts Samsung's investment and construction of factories in Chinese mainland and restricts Samsung from shipping memory chips to the Chinese market, and the production capacity and technology rise of Chinese memory chip manufacturers have also had a serious impact on Samsung's revenue and net profit.
About half of Samsung's memory chips are produced in Chinese mainland factories, and about 40% of memory chips are sold to the Chinese market. To put it bluntly, China is unwilling to buy Samsung's memory chips, which will naturally lead to Samsung's revenue and net profit**.
However, Samsung's business scope is very wide, and the most affected company is actually Samsung Electronics, that is, Samsung Group's companies on semiconductors and consumer electronics, which are not particularly wide for Samsung as a whole, and Samsung is unlikely to go out of business.
So, how exactly did Samsung develop into the Korean giant it is today?
Samsung's founder, Lee Bing-chul, was born in a wealthy landlord family in South Korea, and he established Samsung Industrial in 1938.
Since then, Samsung has entered different industries, including food processing, retail, textiles and other industries.
These industries are basically closely related to people's livelihood, and under the background of the times at that time, Samsung can be said to be like a fish in water in these industries, and Samsung has accumulated a lot of original capital.
In the 1960s, Samsung decided to enter the field of electronics, and at that time, Samsung mainly produced home electronics such as TVs, refrigerators, washing machines, etc., and achieved great success in the Korean market. This, in turn, provides capital accumulation for Samsung's development.
After that, Samsung began to enter the field of semiconductors and telecommunications equipment, and began to produce computer chips and communication equipment. At this time, Samsung has become a well-known enterprise in South Korea, and from the perspective of subsequent development, semiconductors, telecommunications equipment and other fields are also the trend of the future, and Samsung can be said to have made a right choice.
Since the 1990s, Samsung has not been satisfied with the Korean market, and has begun to expand its business globally. At this time, Samsung has become one of the world's leading electronics manufacturers, and has become an industry giant in many fields such as mobile ** and liquid crystal displays.
Since 2000, Samsung has focused on the development of smartphone business, and has now become the company with the largest number of smartphones shipped in the world for many years, even Apple's mobile phone shipments are not as large as Samsung. However, in 2016, Samsung's Note7 mobile phone had a battery ** incident.
As a result of this incident, Samsung basically withdrew from the Chinese market, and its market share in other markets was also affected.
There is no doubt that Samsung is now facing a new problem, if it is not handled well, Samsung's influence will definitely be weakened, and it is no wonder that foreign media will say: Samsung can no longer sit still.
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