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| Samsung Electronics Seocho office building (Yonhap News) |
Even in the prolonged phase of Corona 19, the domestic electronics industry continued to boom last year. This year too, as demand for’pent-up (consumption)’ added to the’super cycle (great boom)’ of semiconductors has been predicted, there is high hope that good results will continue.
According to the electronics industry on the 10th, it is expected that Samsung Electronics and LG Electronics will achieve’unprecedented’ performance this year thanks to the growth of the memory semiconductor business and home appliance and electronic devices, respectively, which are entering a strong market. Wise Report, a financial information company, estimates Samsung Electronics’ operating profit consensus (market forecast) this year at 46 trillion won. LG Electronics is about 3.2 trillion won. This is a number that is close to or beyond the previous maximum.
The increase in expectations for the two companies’ performance this year played a big role in the success of a rebound in memory semiconductor prices as demand for information and communications (IT) increased after Corona 19 last year. In particular, expectations for the semiconductor super cycle are high. It is expected that the market conditions for its flagship products such as DRAM and NAND flash will improve, and orders for foundries (consigned semiconductor production) that are rapidly increasing in demand worldwide will gain momentum. Based on this, it is predicted that Samsung Electronics’ operating profit this year will record the highest performance in three years since 2018 (58.89 trillion won), the highest boom in history.
Kim Unho, a researcher at IBK Investment & Securities, said, “The first quarter of this year is the beginning of the upturn in the semiconductor economy,” and predicted that “the pace of improvement in the industry is progressing rapidly, especially in the first quarter of this year.
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| LG Twin Tower (Yonhap News) |
LG Electronics is also expected to continue improving earnings as the Zipcock trend continues. It is analyzed that the home appliance and TV business will continue to be strong, and the electronics business will turn to a profit this year. Above all, the loss of the mobile phone (MC) division, which has been in the red for 23 consecutive quarters, is expected to decrease significantly. LG Electronics plans to target the market with premium phones such as’rollable phones’, low-cost smartphone K series and stylus series produced through manufacturer development (ODM).
Park Kang-ho, a researcher at Daishin Securities, said, “We are focusing on cost improvement by increasing the proportion of ODMs through the recent reorganization of the MC division.” “If sales are sluggish after the launch of premium smartphones this year, we expect a change in the smartphone business portfolio strategy, which is a deficit in the MC business. It will proceed in the direction of reduction.”
Reporter Bong-cheol Ji [email protected]
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