Samsung Electronics announced a large-scale merger and acquisition (M&A). This is the first time since the acquisition of Harman in 2017 to officially mention M&A.
In addition, Samsung Electronics announced that the market industry will recover this year, centering on semiconductors. We took a cautious stance on the prospect of the semiconductor big cycle.
In a conference call held after the 4th quarter earnings announcement on the 28th, CEO Yoon-ho Choi (CFO) of Samsung Electronics’ Management Support Office said, “We will strategically expand facility investment and pursue M&A by actively utilizing the funds we have.”
President Choi said, “A lot of preparations have been made as we have carefully reviewed the targets of M&A for the past 10 years.” I think positively.”
On this day, Samsung Electronics predicted that memory will find a growth engine from the effects of Corona 19. It is an analysis that the market will enter a recovery trend due to the launch of new 5G products and increasing demand by major smartphone makers. In addition, it expected an increase in data center purchase demand and an increase in demand for notebook computers.
However, regarding the prospect that the semiconductor big cycle will be reproduced, “the average selling price of DRAM (ASP) in the first half is expected to rise.” He drew a line saying, “I’m watching carefully.”
Expansion of foundry capacity is also under continuous review for all regions. In the first quarter of this year, strong demand will continue and supply shortage issues will continue. It is a position that there has been no decision regarding investments such as fab construction in the US.
Samsung Electronics said, “Because of the nature of the foundry, we are constantly reviewing the expansion of production capacity to quickly respond to customer demand. We are considering optimal utilization plans for all regions, including Giheung, Hwaseong, Pyeongtaek, and Austin, USA. Explained.
In addition, Samsung Electronics plans to expand smartphone sales by strengthening its 5G lineup and focus on popularizing foldable phones. In particular, it plans to maximize sales of’Galaxy S21′ in the first quarter of this year and promote the popularization of foldable categories such as’Galaxy Z Fold’ and’Galaxy Z Flip’.
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Meanwhile, Samsung Electronics achieved sales of 61 trillion won and operating profit of 9.5 trillion won in the fourth quarter of last year. On an annual basis last year, it recorded sales of 236 trillion won and operating profit of 35.99 trillion won. This is an increase of 2.8% and 29.6%, respectively, compared to the previous year.
On this day, Samsung Electronics announced that it would pay a special dividend of 1,932 won per share. In addition, from this year to 2023, it has decided to raise the regular dividend to 9.8 trillion won per year while maintaining the policy of returning 50% of the free cash flow to shareholders as before for the next three years.