Samsung’s Chip Business Still Suffering
Samsung Electronics chip division, along with SK hynix, are expected to post quarterly losses during Q2 similar to the last quarter losses.
Samsung’s Device Solutions has been in charge of the chip business and is expected to reveal an operating loss of over $3-4 billion, which would mark a decline from the first quarter.
The slump in the chip industry appears to be continuing, as many are reducing spending on tech products through the inflation claim analysts.
Samsung have also reported the worst quarterly profit in 14 years during the first quarter. Weeks prior, the company revealed it was cutting production in order to cope.
SK hynix are expected to post its third consecutive quarterly operating loss during Q2, following the loss during Q4 2022.
It has been reported the chip market should improve later this year, and the impact will kick in and global demand will increase.
An analyst at KB Securities said, “We believe that Samsung’s quarterly earnings bottomed out in the first quarter. The second-quarter DRAM output beat the forecast and the inventory levels began to decline.”
SK hynix are also expecting to see “the average selling prices in DRAM and NAND pick up, which will contribute to slashing the losses in the third quarter,” another analyst said.