Samsung revenue drops 18% in Q1 as demand for chipset dips

Samsung Electronics has posted 18 percent drop in revenue to 63.75 trillion won for the first quarter ended March 31, 2023 vs 77.78 trillion won in Q1 2022.
Galaxy S23 from SamsungSamsung generated first quarter revenue of 13.73 trillion won (26.87 trillion won in Q1 2022) from Device Solutions / chipset business; 6.61 trillion won (7.97 trillion won) from Display business; 31.82 trillion won (32.37 trillion won) from Mobile and Networks businesses; and 14.08 trillion won (15.47 trillion won) from Visual Display and Digital Appliances businesses.

Samsung, the world’s biggest memory chipmaker, has achieved operating profit of 640 billion won ($478.6 million) during Jan-March 2023. This is the lowest profit for any quarter in 14 years.

Samsung said its chip business would focus on high-capacity server and mobile products based on expectations of a gradual market recovery and a rebound in global demand in the second half of 2023.

Samsung earlier announced its decision to cut chip production.

Samsung’s capital expenditures (Capex) in the first quarter stood at 10.7 trillion won, including 9.8 trillion won for semiconductors and 0.3 trillion won for displays. In Q1 2022, Samsung’s capital expenditures touched 7.9 trillion won.

Samsung’s memory business focused was completing the P3 infrastructure and on the P4 framework in preparation for mid- to long-term supply.

Samsung’s foundry business focused on fabs in Taylor, Texas and Pyeongtaek, Korea to address demand for advanced nodes.

Samsung’s displays business focused on infrastructure and module production enhancements.

SDC has decided to invest in an 8.6-generation OLED production line. Starting this year, SDC will strive to scale up the OLED market and increase adoption of OLED panels in the laptop, tablet and automotive markets.

Samsung’s Networks Business posted a revenue decline, due to weakness from overseas markets such as North America and Southwest Asia. Samsung could not win contracts from Reliance Jio’s 5G network roll outs in Indian telecom market.