Samsung Electronics has announced its financial results for the second quarter of 2024, reporting consolidated revenue of $54.2 billion (KRW 74.07 trillion) and an operating profit of $7.6 billion (KRW 10.44 trillion).
The positive figures are attributed to favourable conditions in the memory market and strong OLED panel sales.
Memory Market Sees Recovery and Strong Outlook
The Device Solutions (DS) Division reported a revenue of $20.7 billion (KRW 28.56 trillion) and an operating profit of $4.7 billion (KRW 6.45 trillion). The recovery in the memory market was driven by increased demand for high-bandwidth memory (HBM), DRAM, and server SSDs.
This demand is fuelled by continued investments in AI by cloud service providers and businesses.
While PC demand was weak, mobile product demand remained solid, particularly due to increased orders from Chinese OEMs. Server applications saw robust demand, leading to significant improvements in the second quarter.
Samsung strengthened its DDR5 market leadership with the mass production of a 128GB product based on 1b-nanometre technology.
In the latter half of 2024, AI servers are expected to dominate the market as AI investments expand. Samsung plans to focus on high-value-added products for AI applications, increasing the portion of HBM3E sales and focusing on high-density server modules.
System LSI and Foundry Businesses Show Growth
The System LSI Business posted record-high sales in the first half of the year, thanks to increased supply of key components such as SoCs, image sensors, and display driver ICs.
The Foundry Business improved earnings through higher orders for sub-5nm technology, and the number of AI and HPC customers doubled compared to the previous year. The business distributed the process development kit for 2nm Gate-All-Around technology to customers ahead of mass production in 2025.
Display Business Targets Increased Demand
Samsung Display Corporation (SDC) posted revenue of $5.6 billion (KRW 7.65 trillion) and an operating profit of $790 million (KRW 1.01 trillion). The mobile display business experienced growth due to flagship product demand, while the large display business expanded sales in high-resolution monitors.
SDC anticipates increased mobile display sales in the second half due to new smartphone releases and potential AI adoption. The company plans to enhance product performance and profitability by focusing on high-value-added products, improving power consumption, brightness, and durability.
Foundry Business Targets AI and HPC Growth
Samsung’s Foundry Business plans to continue growing its customer base and sales for AI and high-performance computing (HPC) applications, aiming for a significant expansion by 2028.
The introduction of second-generation 3nm GAA technology into full-scale mass production is expected to drive growth, outpacing the overall foundry market.
Visual Display Business to Leverage Premium TV Demand
With a strong lineup of Neo QLED, OLED, and Lifestyle screens, Samsung’s Visual Display Business will focus on promoting its competitive features, such as AI integration and innovative design.
The company aims to strengthen its leadership in the premium TV market and enhance its service offerings to maintain growth momentum.
Outlook for the Second Half of 2024
Samsung anticipates a favourable outlook for the second half of the year, with revenue growth driven by sustained demand for AI and server solutions, innovative mobile and display products, and its strong foothold in the premium TV market.
The company’s strategic initiatives and focus on high-value technologies aim to deliver continued success across its diverse business segments.
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