Samsung Semiconductor lost 13 trillion yuan, froze executive compensation, and the prospect is worrying!
As the saying goes, when the gods fight, so do the elves. Although the United States imposed a technological blockade on China, China was not affected much. The cannon fodder of the chip war has appeared! A huge loss of 13 billion yuan, executive salaries were frozen, and Samsung was on the verge of bankruptcy.
On January 31, Samsung finally announced a profit for the fourth quarter of 2023, which was about 282 trillion won, down 344%。According to the final report, Samsung Electronics' net profit for 2023 is 6567 trillion won, down 8486%。And all thanks to Samsung Semiconductor.
In the last quarter of 2023, Samsung's total revenue totaled 2169 trillion won, with serious losses and no profit. Maybe Samsung realized the problems in the semiconductor industry and didn't expect to make money, losing 17 trillion won.
China was once South Korea's largest chip market, accounting for 60% of the global export market. However, when the U.S. imposed an export ban on Chinese technology companies, South Korea was forced to follow the U.S. lead and shut down production lines in China.
But after withdrawing from the Chinese market, South Korea is struggling to find such a large user base, and the United States has promised up to 50 billion yuan if Samsung succeeds in building a factory in the United States. But in the end, Samsung didn't get its cake of its own.
To make matters worse, a federal court in Texas ruled that Samsung had infringed Samsung's patent rights and ordered Samsung to pay $400 million in damages. I didn't eat a piece of meat well, and I was beaten. Under such pressure, Samsung's life is not easy.
In this case, Samsung has also considered regaining the Chinese market. But in the face of pressure from the United States, Samsung could not do anything. A large number of chips are stuck in the warehouse, unable to be **, and eventually become scrap.
If China starts developing its own chips, it will be difficult for South Korea's Samsung to reclaim the market, even if the United States does not export to South Korea. It's like a Samsung phone: there is no Samsung on the sales list in China.
If Samsung does nothing about this situation, losses will continue to increase and will eventually bring down the entire company. According to South Korea's Daily News, Samsung executives have decided to reform the compensation of senior executives in 2024.
Samsung Electronics said that the company's senior management basically agrees with this view. This is an extraordinary moment and we need to take special measures. However, Samsung has reached the point of no return, and it is obviously impossible to try to save Samsung by laying off employees.
In fact, this isn't the first time Samsung has done this. Affected by the global financial crisis, Samsung froze the salaries of its executives in 2009. In 2015, it did the same.
But this time it's different: Samsung's chips aren't irreplaceable. Before the U.S. banned Chinese exports, many domestic companies thought that instead of buying chips, it was better to produce them themselves, and there was no need to spend so much money on them.
However, when the export ban was imposed, those who had this thought shuddered: it is not yet known when the next one will be. It also gave the Chinese company a resounding slap in the face, as they had to put all their energy into the project.
Even if the quality of the tablets produced by domestic tablet manufacturers is not as good as Samsung, at least their ** chain is stable, and this is the key to the company's own destiny. With this mentality, it's almost impossible for Samsung to change the status quo.
South Korea is undoubtedly the biggest victim of the Sino-US conflict. South Korea's four pillar industries are becoming one of China's largest markets. It's not just chips, cars, shipbuilding, and screens, China is catching up.
At the moment, we don't have a strong brand in China, but it's only a matter of time. Once we establish our brand in China, this huge industry will take off and take root in South Korea.
My country has always been peace-loving and realistic, and has never provoked anyone or attacked any organization. But since others want to put pressure on us, we can only choose to fight back. However, we don't know if the other side will be able to withstand this counterattack.
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