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High inventory and sluggish market, Samsung Semiconductor and SK Hynix chip businesses face serious losses

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Update time : 2023-03-24 11:20:38
        According to reports from South Korean media, according to the declaration documents submitted by Samsung on March 19th, as of the fourth quarter of last year, Samsung's overall inventory assets had reached 52.2 trillion won, or approximately $39.9 billion, setting a record high. Another semiconductor giant, SK Hynix, was also facing a dilemma of excessive inventory, with inventory assets reaching 29.1 trillion won, or approximately $22.2 billion, in the fourth quarter of last year.
        Samsung's semiconductor business unit is the highest proportion of Samsung's total revenue. However, the inventory amount of the semiconductor business unit in the fourth quarter of last year also reached 29.1 trillion won, a significant increase of about 12.6 trillion won compared to the same period in 2021. According to data from FnGuide, Samsung's chip business is expected to lose between $1.46 billion and $3.4 billion in the first quarter of this year.

        SK Hynix focuses on DRAM and NAND flash memory, which account for more than 90% of its company's total revenue, so the impact of market downturn will be even greater. FnGuide predicts that SK Hynix may lose about 2.37 billion yuan in the first quarter of this year.
        At present, the chip prices of DRAM and NAND flash memory have rapidly fallen to cost prices. According to the latest forecast of TrendForce, the revenue of the NAND flash memory industry will decrease by 8.1% in the first quarter of 2023. However, major suppliers such as Armor and Micron have successively reduced production, so the situation of product surplus is expected to be alleviated.


 
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