Domestic memory chips have worked hard, and in 2023, Samsung Semiconductor will suffer a loss of $80 billion!
Some time ago, the global technology giant Samsung released its performance report for the fourth quarter of 2023 as well as the full year of 2023.
To put it bluntly, 2023 is Samsung's Waterloo, with full-year revenue of 259 billion won (about 1.4 billion yuan), down 1433% and a net profit of 154800 million won (about 83.4 billion yuan), down 7217%。
Among them, the biggest damage was naturally the semiconductor business, which lost 149 trillion won (about 80.1 billion yuan), while in 2022, the earnings of Samsung's semiconductor business were 238 trillion won (about 128 billion yuan).
From these data, it can be seen that in 2023, the semiconductor business has become Samsung's biggest burden, with losses of up to 80 billion yuan, equivalent to 120 billion yuan in 2022, a loss of two-thirds.
Why is Samsung losing so much money on semiconductors? Of course, the biggest loss in 2023 is the memory chips.
In terms of the market, Samsung, as a global memory chip giant, has no rivals in the DRAM+NAND field, with only one company accounting for about 40% of the share.
But in 2023, due to weak demand due to poor sales of mobile phones, computers, servers, and other electronic digital products, Samsung will produce more memory, the larger its inventory will be, and it will eventually have to clear its inventory and reduce prices**.
In addition, the rise of China's memory chip manufacturers has also made the market more competitive, breaking the monopoly of international giants such as Samsung, making these giants uncontrollable.
Domestic manufacturers have survived for a long time, and after a large number of NAND flash memory shipments, domestic SSD manufacturers have a large number of affordable SSDs, forcing Samsung SSDs to step down from the altar and have to drop prices significantly.
After Changxin's DRAM was listed, the situation was the same, and the DRAM memory was also lowered, causing Samsung to dare not sell memory, forcing everyone to dare to keep cutting prices to seize the market.
The data shows that in 2023 the average decrease in DRAM+NAND is about 40% compared to 2022, and as a result, what would have been a profitable business has turned into a loss.
In fact, it is not only Samsung that is losing money, but also two other chip storage giants, Micron and SK hynix, the two major manufacturers, according to the financial report, the total loss is estimated to be around 700-80 billion.
However, memory tablets are cyclical products, there are troughs, there must be peaks, from the current situation, the trough seems to have passed, and the current **Compared with the low point in 2023, it has been about 20%.
According to the agency**, the next generation of memory chips is likely to continue to grow by around 60% compared to the peak in 2022, albeit slightly lower, but not much lower.
In this case, it is estimated that Samsung, SK hynix and Micron are going to start making money again, but it is undeniable that now due to the entry of memory chip manufacturers in various countries, even if these international giants want to raise prices, they will definitely not be able to rise so much, and some of them will definitely be lost in the market, so it is not so easy to win.
Subsequently, with the continuous development of domestic memory chips and the increasing market share, the days when these international giants were lying down to make money are estimated to no longer exist, which is the meaning of the rise of the domestic market.