Samsung Electronics, Q1 and Year Market Forecast
Reinforcement of ESG response and commitment to expand sustainability management
[그린포스트코리아 이한 기자] As Samsung Electronics released its fourth quarter results on the 28th, it also revealed its forecasts for the first quarter of this year and 2021. On this day, Samsung Electronics also added a plan to solidify the foundation for sustainable management by continuing to strengthen its response to ESG.
Regarding the earnings outlook for the first quarter of this year, Samsung Electronics said, “Wireless performance is expected due to the early launch of the Galaxy S21, but company-wide profitability is expected to decline due to deteriorating performance in the parts business such as memory and display.”
According to Samsung Electronics, despite the continued recovery of mobile demand and data center demand, memory earnings are expected to decline due to negative welcome and initial cost of new lines.
◇ What is Samsung Electronics’ 2021 outlook by sector?
System LSI plans to expand supply of SoC, CIS, and DDI for flagship smartphones, and the foundry is planning to expand production of EUV 5nm SoC and 8nm HPC chips.
Samsung Electronics also presented outlooks by sector. In the case of small and medium-sized panels, DP is expected to significantly deteriorate QoQ, but compared to the same period of the previous year, OLED adoption is expected to increase, leading to improved performance. In the case of large-sized panels, we will continue to transform the business structure based on QD technology.
Wireless earnings are expected to improve thanks to increased sales of flagship products such as the’Galaxy S21′ and the launch of new mid- to low-end models. CE sales are expected to slow down amid the seasonal off-peak season, but Samsung Electronics said that sales of new products are expected to slow down on time and expand sales of premium products.
For the whole of 2021, he said, “There are always risks such as re-proliferation of Corona 19, but global demand is expected to recover.”
The memory semiconductor industry is expected to recover in 1H12 due to solid mobile and server demand, but global economic uncertainties such as the exchange rate are also expected.
Samsung Electronics plans to accelerate the conversion of 1z nano DRAM and 6G V-NAND, while enhancing cost competitiveness and market leadership by expanding EUV application.
System LSI is actively responding to the 5G SoC and high-pixel sensor market with differentiated products, and the foundry plans to accelerate its growth by expanding mass production of EUV 5 nanometers and diversifying applications. In the case of small and medium-sized panels, DP plans to continuously improve technology differentiation and price competitiveness, and in the case of large-sized panels, it plans to focus on establishing the basis for timely development of QD displays.
Wireless is planning to expand smartphone sales by reinforcing flagship products such as’Galaxy S21′ and foldable smartphones, as well as mid- and low-priced 5G lineups, while improving profitability by improving the cost structure. The network plans to continuously strengthen its global 5G business by expanding new orders.
CE plans to expand premium products such as’Neo QLED’,’Micro LED’, and Bespoke home appliances, enhance marketing efficiency and enhance online sales, and promote sustainable growth by establishing a stable supply chain based on global capabilities.
◇ “We will continue to strengthen our response to ESG and solidify the foundation for sustainable management”
Samsung Electronics also revealed on the scale of facility investment and ESG management activities in 2020. According to Samsung Electronics, facility investment in 2020 is about 38.5 trillion won, and by business, semiconductors are 32.9 trillion won and displays 3.9 trillion won. Memory investment increased due to the transition to advanced processes and expansion to respond to future demand growth, and the foundry also increased significantly compared to the previous year due to expansion investments such as EUV 5-nano process.
In the display, investment increased compared to the previous year, focusing on the expansion of QD display production capacity (CAPA) and small and medium-sized new technology processes.
Samsung Electronics said, “We are doing our best to create environmental and social values along with improving business competitiveness, and are making great efforts to strengthen governance of sustainability management.”
Samsung Electronics has upgraded the Sustainability Management Council, a company-wide consultative body that discusses the company’s sustainability management strategy, to the CFO, so that sustainability management can be reflected in a higher ranking in the overall management decision-making process.
The Sustainability Management Office, which has been operated under the existing Management Support Office, has been upgraded to a Sustainability Management Promotion Center under the direct control of the CEO. Through the entire life cycle, including R&D, marketing, and AS, sustainability was implemented in products and services.
Samsung Electronics said, “We plan to solidify the foundation for sustainable management by continuing to strengthen ESG responses in the future.”
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