Samsung’s Q3 earnings outlook gloomy amid weak global chip demand

Third quarter earnings outlook Samsung Electronics and SK hynix, the world’s two largest chipmakers, remain largely gloomy due to a recent drop in global demand for memory chips, an analysis of industry data showed on Sunday.

According to Yonhap Infomax’s analysis of the earnings outlook for the two companies by securities firms over the past month, Samsung and SK hynix are expected to record operating profits of 12.8 trillion won ($9.07 billion). dollars) and 2.59 trillion won on a consolidated basis during the June-September Period, respectively.

Operating profit forecasts for Samsung and SK hynix represent declines of 18.6% and 37.8% from their respective third-quarter results a year ago.

The expected declines in earnings were largely attributed to the effects of growing global inflationary pressure weighing on global demand for memory chips.

Do Hyeon-woo, chip industry analyst at NH Investment & Securities Co, estimated that Samsung’s DRAM shipment volume would decline 3% in the third quarter and expected its average selling price ( ASP) chips drop 17%.

Eo Gyu-jin, an analyst at DB Financial Investment Co., predicted corporate profits would rebound from the fourth quarter of 2023, following an expected recovery in the global chip industry in the second quarter of next year.

Samsung has expanded its market share of global semiconductor industry in the second quarter, retaining its top spot, according to a research report.

Samsung’s April-June chip revenue hit a quarterly record $20.3 billion on strong server demand, accounting for 12.8% of the global total of $158.1 billion , according to research firm Omdia.

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