The market is frozen, and Samsung’s semiconductor division has lost 6 trillion won

  Recently, the semiconductor company's financial report confirms the concerns of the outside world. Samsung Electronics recently announced that the semiconductor sector's revenue in the fourth quarter of last year has plummeted by 6 trillion won, and the worry that the semiconductor recession is faster than expected is increasing. It is estimated that this trend will probably continue until the first half of this year.

According to the "Korea Economy" report, Samsung Electronics announced on the 31st that the fourth quarter of last year, semiconductor revenue of 187 billion won, the profit of 77 billion won, and the highest record of the previous quarter (revenue of 347.60 billion won, profit Compared with the 136 billion won, the revenue has plummeted by 16 trillion won, and the profit has shrunk by 6 trillion won.

The outside world generally expects the semiconductor market to stabilize in the third quarter of this year. In 2019, it will show a “lower and higher” revenue trend. At the same time, Intel may also take the opportunity to take away the "semiconductor throne", because Intel and Samsung rely on the memory business, the shrinking semiconductor has less impact on Intel.

As for the reason for the decrease in revenue of the memory business, Samsung Electronics explained that due to the adjustment of inventory by major customers such as data centers and smart phones, the memory demand has dropped significantly, and the shipments have also decreased. In addition, other companies have expanded their supply of NAND flash memory, resulting in a drop in prices. Affect the revenue of the semiconductor business.

Affected by the Sino-US trade war, increased global economic instability, global IT companies' memory orders decreased, and Facebook, Amazon, Apple, Google, Baidu, Alibaba and other companies postponed data center investment plans, followed by servers Demand for DRAM has fallen dramatically. The industry predicts that Samsung Electronics' performance will decline in the first quarter. Samsung Electronics also mentioned in this year's outlook that the first quarter is when customers adjust their inventory, and the impact of the off-season will continue to reduce overall demand. External observations, DRAM prices may fall again under the dual impact of weak demand and off-season.

Samsung Electronics plans to expand its high value-added DRAM sales and actively respond to the demand for high-capacity All-Flash NAND. In addition, it will increase the revenue by expanding the sales of AP (mobile phone application processor) and picture sensor for flagship smartphones, and enjoy the effect of entering the peak season.

According to Samsung Electronics, the peak season effect and the expansion of the high-capacity memory market are expected to start to recover. NAND flash memory will also increase the demand for high usage as customers continue to stabilize their prices. On the other hand, after the release of the new CPU and the new generation of smartphones in the second half of the year, DRAM is expected to start to increase demand.