With the rise of domestic memory chips, Samsung Semiconductor suffered a huge loss of 80 billion thanks to China's technological efforts
Samsung, the world's technology giant, recently announced its earnings for the second and second quarters of its company.
To put it bluntly, this is Samsung's Waterloo, with a total revenue of 259 trillion, down 1433%；The company's net income was 1548 trillion won, a decrease of 72 year-on-year17%。
Among them, the most significant loss is undoubtedly Samsung, which will lose 149 trillion won (80.1 billion), compared to 238 trillion won (128 billion won).
Judging from this figure, Samsung will be the biggest burden in 2023, with a loss of 80 billion yuan, that is, Samsung's profit in 2022 will be reduced by two-thirds.
Why did Samsung lose so much? It's definitely a memory issue.
Samsung, on the other hand, is the world's largest manufacturer of memory chips, accounting for about 40% of the memory and NAND flash memory market.
But in 2022, Samsung will produce more and more memory and more inventory, and in the end it can only be sold at a low price**.
Moreover, China's memory manufacturers are also increasing, so that several companies such as Samsung have lost their pricing power over products.
Domestic manufacturers have begun to produce NAND flash memory, while Huaxia's SSD manufacturers have begun to sell cheap SSDs, which has caused Samsung's SSDs to be greatly impacted.
The same is true for Changxin's DRAM chips, and their DRAM chips are also substantially larger, which makes the three major manufacturers have to reduce the price of chips to seize more markets.
The data shows that from 2022, the selling price of DRAM + NAND flash memory chips will drop by about 40% year-on-year, which makes the lucrative NAND flash memory chips lose money.
In fact, not only Samsung, but also the other two major memory companies are also losing money, judging from the financial data of Micron Semiconductor and SK hynix, their total losses are between 700 and 80 billion.
According to the current situation, it seems that it has passed the bottom, and the current stock price is about 20% higher than the end of 2022.
According to the company's estimates, memory** will continue to climb to 60%, which is a bit lower than the peak in 2022.
In this case, companies such as Samsung, SK hynix and Micron will make a lot of money, but with the entry of domestic memory companies, those multinational companies who want to raise prices will not have such a large space, and they will also lose a part of the market, making their profits more difficult.
Now, with the progress of domestic memory technology, their market share will also increase, and those multinational companies will no longer sit on the profits of fishermen, but the rise of China.