According to the latest information, the South Korean foundry manufacturer Samsung Electronics revealed last week that it will increase foundry prices.
As per the report of Tom’s Hardware and SoyaCincau, that Ben Suh, senior vice president of Samsung’s investor relations department, said at a conference that Samsung’s foundry business is expected to accelerate growth, mainly through the expansion of the Pyeongtaek S5 production line and adjustment of pricing.
In other words, Samsung is planning to increase foundry prices to support the expansion of its S5 factory near Pyeongtaek, South Korea, so that it can get more revenue to support the next round of investment. The industry believes that the rise in Samsung foundry prices may affect the prices of chips such as GPUs, SoCs, and controllers manufactured by Samsung.
Samsung Electronics plans to spend US$26.3 billion this quarter, of which US$23.75 billion is for semiconductors and US$1.6 billion is for displays. The investment in the foundry business focuses on the expansion of advanced processes, such as 5nm EUV lithography machines, and the launch of 3nm grid ring (GAA) designs.
The S5 factory is Samsung’s most advanced production line at present, which can support 5nm family 5LPP, 4nm 4LPE, and other process processes. In addition, the factory uses a large number of EUV lithography machines, and the cost of expansion is very high. Therefore, Samsung high capital expenditures in recent years, so they hope that customers will pay for it.
As we all know, Samsung uses its latest node technology to produce chips, such as its own Exynos chip, NVIDIA Ampere GPU chip, Qualcomm Snapdragon 888 chip, and tens of thousands of SoCs.
It is worth mentioning that Samsung is currently the only foundry that has officially confirmed the price increase. TSMC, UMC, SMIC, etc. reported by the media have not been formally confirmed.
Samsung profit drops 31% in third quarter 2022 [Official]
Today, Samsung officially published the earning report for the third quarter of 2022, confirming a huge 31% profit drop. The company also said that geopolitical uncertainties are probably reducing demand until early 2023 as the global economic downturn reduced need for electronic devices.
Despite the headwinds in global economy, demand for its semiconductors may recover in late 2023 as new data centres and computers require more memory. However, Samsung denied any change to its 2023 memory chip investment plans to take an edge against rivals such as SK Hynix.
Han Jin-man, executive VP of memory business at Samsung said:
“We are not considering an artificial production cut.: She added, “Market demand has contracted right now, but … we need to prepare for mid- to long-term demand recovery.”
Talking about mobile business, the Korean tech giant revealed that its mobile business fell slightly to 3.24 trillion won from 3.36 trillion won last year due to a slightly low demand for high-end smartphones and newly released wearable devices.
Compared to this year, the South Korean company forecast 2023’s mobile demand could recover slightly as it planned to focus on its flagship and foldable smartphones lineup. As the Galaxy S23 series launching earlier next year, followed by foldable in 2nd half, the recovery is highly expected.
In the next quarter, Samsung forecast increased market demand for smartphones and wearables from the previous quarter due to year-end seasonality despite ongoing geopolitical issues and macroeconomic instability. The company aims to maintain strong sales of Z4 series foldable and S22 series smartphones.
You can read the full earnings report at Samsung Newsroom
Meanwhile, Samsung officially announced the appointment of Jay Y. Lee as Executive Chairman of Samsung Electronics. By appointing Jay Y. Lee as Executive Chairman, Samsung showed that the Korean tech giant will be officially run by the third generation of its founding family.
Samsung sees 1 million shipments drop in India: Canalys Q3 2022 Report
During the festive season, Samsung was the most beloved smartphone vendor in India. Meanwhile, a recent Canalys market research report suggests Samsung sees 1 million shipments drop in India in the third quarter of this year, compared to the same period last year.
According to Canalys researchers, Samsung sold 8.1 million smartphones in Q3 2022, while the shipment figures were 9.1 million in the same period last year. Due to this 1 million less smartphone shipments, Samsung India recorded an 11% drop compared to Q3 2021.
The South Korean tech giant remained the 2nd largest smartphone vendor with 18% of the total market share. In the third quarter of 2021, the company grabbed a 19% market share with 9.1 million smartphone units shipment in India.
Xiaomi, on the other hand, was the king in the Indian smartphone market in the third quarter, but it had also seen a huge 18% drop compared to last year, while shipments slipped to 9.2 million units from 11.2 million. The Chinese company secured 21% market share in India in Q3 2022.
Apart from Xiaomi and Samsung, Vivo was the third smartphone vendor with a 16% market share, followed by OPPO and Realme ranked fourth and fifth with 16% and 14% market shares, respectively. To be noted, Xiaomi includes sales of Poco, Vivo includes iQOO, and Oppo includes OnePlus.
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Samsung ranks fourth on Forbes list of world’s largest tech companies
Despite high sales costing trillions of dollars in market value, the world’s largest technology companies remain strong against the stringencies of Wall Street — many of which collect revenue and profits as their dominance begins to decline.
After looking for a record of 177 locations on the list by 2021, the number of technology companies reaching Global 2000, Forbes’ annual average of the world’s largest companies, dropped to 164 this year (2022), but the overall decline did not prevent total sales. The firms have set a record $4 trillion in gross annual revenue over the past 12 months, up from about $3.3 trillion last year — even a few firms.
According to a recent report, Samsung Electronics‘ ranking on Forbes’ list of the world’s largest technology companies dropped two notes from second in 2021 to fourth in 2022.
World’s Largest Tech Companies ln 2022
Samsung Electronics’ sales increased to US$244.2 billion from US$200.7 billion last year, but its market value declined by US$143.2 billion to US$367.3 billion, according to US Business Magazine.
Apple also took the top spot and its market capitalization reached US$2.6 trillion, up from US$300 billion last year from $2.3 trillion. In this list, Google’s parent company Alphabet is in second place.
The sales of Alphabet sales reached US $257.5 billion, an increase of US $75.1 billion from the previous year (US $182.4 billion). At the same time, its market capitalization also increased from US $ 1.5 trillion to US $1.6 trillion.
Likewise, Microsoft (US $2.1 trillion) took the third spot, while Tencent (US $414.3 billion) remained in the top five. Meta Platforms (the US $499.9 billion) took the sixth spot, followed by Intel (US $190.3 billion), TSMC (the US $494.6 billion), Cisco Systems (US$213.4 billion), and IBM (US$124.3 billion).