In 2023,SamsungChipsThe business lost 149 trillion won, equivalent to 80 billion yuan, is jaw-dropping. The meaning behind this number is significant, as it signifiesSamsungChipsThe profitability model of the business is fundamentally changing. In 2022,SamsungChipsThe business also made a profit of 128 billion yuan, which was once quite brilliant. However, everything has changed dramatically in just one year, and the situation of serious losses makes people sigh at the unpredictable situation. Historically,ChipsBusiness has always beenSamsungThe cash cow was surpassed not only in 2017IntelBecome the largest in the worldSemiconductorsIn the past, the company has set a record of a single quarterly net profit of 59 billion yuan. Nowadays, howeverSamsungChipsThe business is facing huge challenges and difficulties, and the loss of 80 billion yuan is only the tip of the iceberg, and it may even lose more than 100 billion yuan in the future. The reasons behind this are worth digging into**.
(1) The impact of the downturn in consumer electronics
In 2023, globalSmartphonesFor the first time, shipments fell to 11700 million units, down 32%, a new low in nearly 10 years. Among them,ApplesSmartphonesShipments beyondSamsung, at the top of the list, brokenSamsung12 years of supremacy. In addition, the markets for personal computers, servers, and personal wearable devices have also suffered varying degrees of decline. The general decline in electronics sales had a direct impactChipsdemand to make the world's largestChipsMakerSamsungHit hard. In this case,ChipsThe backlog is serious, and the only solution is to reduce prices**, destock, and try to survive.
In the context of the downturn in the consumer electronics industryMobile phones, personal computers, servers and other products sales plummeted, resulting inChipsDemand has plummeted. This not only directly affectedSamsungetcChipsThe volume of orders from producers has also made the worldMemory chips**Encounter**. Storage devices that were once sold plummeted, such as 1t mobileHard diskFrom 2000 yuan to only 200 yuan, 256gMemory**From 400-500 yuan to only 60 yuan, the price reduction measures made the market turbulent for a while. This extreme price reduction is not only painful for manufacturers, but also for consumers. In addition, the false process improvement is also correctChipsThe market created additional challenges, as process upgrades did not result in significant performance gains, but rather increased production costs, making things even worse for the company.
Chinese chipsindustry rises to the globeChipsThe market landscape has had a profound impact. China vigorously develops domestic productionChips, the production capacity and technical level have been steadily improved, and at the same time, China has an impact on importsChipsis also gradually decreasing. Chinese chipsThe rise of the overseas makes it overseasChipsEnterprises are under pressure, domesticChipsGradually win market share in performance and **, while traditional giants such asSamsung、skHynixMicronand so on, but suffered significant losses one after another. For the sake of counterattack,Samsungand other companies have taken various countermeasures, but the challenges remain severe. China has become globalChipsAn important member of the industry, its rise should not be underestimated, and will continue to lead the development direction of the industry in the future.
In general,SamsungChipsThe root cause of the business loss is the result of a combination of factors, ranging from the downturn in the electronics marketMemory chipsFalse process elevation toChinese chipsThe rise of the city, all forSamsungIt has brought great challenges and impacts. In the current situation, the worldChipsThe industry is facing unprecedented challenges and changes, and how to deal with these challenges will determine the future fate of enterprises.
(2) Memory chips***
SamsungAs the world's largestMemory chipsThe company, with a market share of about 45%, is one of the leading enterprises in the market. However, due toChipsThe sharp drop in demand,Memory chipsInventory backlog is severeSamsungThe chain of funds has been seriously challenged. In response to inventory pressure,SamsungHad to be loweredMemory chips** to launch a large-scale destocking operation. This move has reduced the pressure on capital to some extent, but it has also led to:Memory chipsThe market is the same. Some of the storage devices that used to be the first to move, such as 1THard disk**Straight down to less than one-tenth of the original price, 256gMemory** It also fell to one-tenth of the original price, and this market turmoil has not only affected the profitability of enterprises, but also has had a profound impact on the industry landscape.
InMemory chipsThe market **dramatically** case,SamsungetcMemory chipsThe giants suffered from it. Memory chipsThe backlog of inventory in the market is serious, and in order to revitalize funds, enterprises can only choose to reduce prices and de-inventory on a large scale. The rapid decline of expensive storage devices has brought a huge impact on the market, and at the same time, it has also put enterprises under unprecedented pressure to survive. Faced with this situation,Samsungand other companies had to launch an unprecedented price reduction action in the industry in an attempt to save the situation.
(3) Dispute over process improvement
withChipsAs the process continues to evolve, manufacturers are racing to launch more advanced productsChipsOEMCraft. However, companies such as TSMC have won 60% of the world's share through so-called advanced processesChipsOEMshares, will be many partners such as:Apples, MediaTek, AMD, etc. are included in the command. In this context,ChipsEnterprises are accelerating iterative processes in an attempt to advance the process to less than 5nm. Although this kind of "false process improvement" can bring certain market advantages in the short term, its essence is misleading and distorting the market. Rather than delivering significant performance gains, process improvements have increased production costs, a false approach that will ultimately hurt the long-term development of the entire industry.
In the process fraud dispute, TSMC and other companies have attracted a large number of orders through the so-called advanced process, occupying the commanding heights of the market. However, as the market becomes more rational and cautious, the false dispute over process improvement is also gradually emerging. Rather than delivering the expected performance improvements, process improvements have increased production costs, making companies face serious challenges. In this context,Samsungand other enterprises actively invest in research and development, and strive to make breakthroughs in the technical level, but there are still many challenges and difficulties, and the future development path is still full of uncertainty.
In the face of challenges and pressures in the international market, China has decided to increase its efforts to develop domestic productionChipsindustry, promote independent research and development, reduce importsChipsdegree of dependence. SMIC, ChanghongSemiconductorsShanghai Microelectronics, Chinese Academy of Sciences, Tsinghua University and other institutions have actively developed domestic lithography machines to promote technological progress. Driven by this series of initiatives, domesticChipsThe production capacity has been greatly improved, and the technical level has been rapidly improved, and it is domesticMemory chipsThe market share is also expanding. And, domesticChipsIt has a certain competitive advantage in **, only the United StatesChips** Half,OEM**Also significantly lower than overseasOEMfactory, for domestic productionChipsEarn a place in the market. in domestic productionChipsin the process of the rise of overseasChipsBusinesses such as:Samsung、skHynixMicronand so on have also suffered serious blows, and the phenomenon of losses is increasing day by day. In the face of domestic productionChipsThe strong rise of overseasChipsEnterprises must strengthen technological innovation and reduce costs and increase efficiency in order to be invincible in market competition.
fromSamsungChipsIn the context of the huge losses of the business, we can see that the worldChipsThe market is undergoing an unprecedented transformation and reshuffle. In the consumer electronics market declinedMemory chipsProcess False Controversy and Domestic ProductionChipsThe rise of tradition in the backgroundChipsGiants such asSamsung、skHynixMicronand so on are facing serious challenges. Chinese chipsThe rise of the industry has not only changed the pattern of the industry, but also overseasChipsBusinesses have had an unprecedented impact. In order to adapt to industry changes, traditional giants must strengthen technological innovation and strategic adjustment, and find breakthroughs in order to remain invincible in the fierce competition. In the future, with the globalChipsWith the continuous evolution of the market, the pace of industry change will also accelerate day by day, and only by continuous innovation and adaptation can we remain invincible in this century-old change.