Samsung: Fiscal 2Q23 Financial Results

For Samsung in  2FQ23, global sales reached 60.01 trillion won or $43.8 billion (with net profit of 1.72 trillion won), down 5.9% Q/Q and 22.3% Y/Y.

Among its multiple activities, Samsung is involved on DRAM and NAND.

DRAM
Bit growth exceeded guidance as the company expanded sales of server products while actively responding to rising demand for DDR5 and AI-use HBM. For DRAM, the Memory Business exceeded bit growth guidance by expanding sales on applications of consumer, graphics and automotive in addition to expanding sales focusing on servers.

Looking at each product, in the case of DRAM, the firm exceeded the growth guidance by expanding sales and application of consumer, graphic and automotive in addition to expanding sales focusing on servers. For server applications, in particular, analysts indicated that supply growth for server exceeded that of the industry. Thanks to firm’s overall sales expansion and active response to rising demand for DDR5 and HBM for generative AI application.

NAND
The ASP drop eased Q/Q amid firm’s efforts to keep strengthening cost competitiveness via expanding advanced node portion.

As for NAND, the Memory Business actively responded to the demand for flagship smartphones with competitiveness in UFS 4.0 and also achieved bit growth guidance by increasing sales of gaming devices, branded products for retail and so on. Meanwhile, the price decline was considerably less than the previous quarter in mid-single digit percentage range.

NAND shipments increased around 5% at 56.7EB.

For NAND, while continuously strengthening cost competitiveness by expanding the portion of cutting edge node, the firm actively responded to the demand, for – especially for a flagship smartphone with its competitiveness in UFS for that. In addition, it achieved big growth guidance by increasing sales of gaming devices, branded products for retail and so on.

Meanwhile, the price decreased by a percentage in the mid- to high single diFor NAND, bit growth in the second quarter increased by a mid-single-digit percentage, while ASP fell by a percentage in the mid- to high single-digit range.

For 3FQ23, Samsung expects market bit growth to increase by a mid- to high single-digit percentage and its bit growth should somewhat exceed the market, which is considerably less than the high teens decline shown in the previous quarter.

In this situation, it achieved the growth guidance despite the limited price drop for both DRAM and NAND. As a result, 3FQ23 performance has been improved compared to the previous quarter, and it was confirmed that firm’s inventories for both DRAM and NAND also picked out in May.