Despite the performance of wireless and consumer electronics, the parts business is sluggish.
Samsung Electronics predicted poor performance in the first quarter of this year. This is because the product business such as smartphones and home appliances is fine, but the parts business is expected to be sluggish.
On the 28th, Samsung Electronics predicted that “the first quarter of this year will decline (compared to the previous quarter), and will be affected by the deterioration of the performance of parts business such as memory and display.”
In the case of the memory business, earnings were expected to decline due to poor exchange rate conditions and initial investment costs for new lines.
The display division is also expected to see a sharp decline in earnings compared to the previous quarter in the small and medium-sized panel business. However, compared to the same period of the previous year, it is predicted that the adoption of OLEDs (all red, organic light emitting diodes) will increase and improve performance.
Samsung Electronics determined that there is a lot of uncertainty about the business environment this year. An official from Samsung Electronics said, “There are always risks such as re-proliferation of Corona 19, but global demand will recover.” In the case of memory semiconductors, he explained, “In the case of memory semiconductors, the industry is expected to recover in the first half due to solid demand for mobile and server, but global economic uncertainties such as exchange rates are also expected.”
Accordingly, Samsung Electronics will accelerate the conversion of 1z nano DRAM and 6th generation V-NAND. In addition, it plans to strengthen cost competitiveness and market leadership by expanding the application of EUV.
System LSI actively responds to the 5G SoC and high-pixel sensor market with differentiated products. The foundry plans to accelerate its growth by expanding mass production of EUV 5-nanos and diversifying applications.
In the case of small and medium-sized panels, the display continues to increase technological differentiation and price competitiveness. The large-sized panel business plans to focus on building a foundation such as quantum dot (QD) display development.
On the other hand, wireless (IM) and consumer electronics (CE) are expected to perform well.
An official from Samsung Electronics said, “Wireless earnings are expected to improve with the expansion of sales of flagship products such as the Galaxy S21 and the launch of new mid- to low-end models.” “Consumer electronics sales will slow down due to the seasonal off-peak season, but they will deliver solid results through timely launch of new products and expansion of premium product sales.”
Wireless will strengthen flagship products such as the Galaxy S21 and foldable smartphones, as well as the mid- to low-end 5G lineup. In addition, in order to increase profitability, it is promoting cost structure improvement.
The network plans to strengthen its global competitiveness by expanding new orders for 5G communication equipment.
Consumer electronics are expanding their premium products such as’Neo QLED’,’Micro LED’, and’Bespoke home appliance’. It also promotes marketing efficiency and online sales. It will also build a stable supply chain based on its global supply chain management (SCM) capabilities.
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