Although Samsung Electronics increased its operating profit to $6.66 billion in the third quarter, its semiconductor segment saw a 40% drop in profit, falling to $2.83 billion. This is well below the expected $4.9 billion. reports Reuters agency.
The company attributed the decline in earnings in the semiconductor industry to one-time payments to employees and currency fluctuations. At the same time, rival SK hynix achieved a record operating profit of $ 5 billion, while TSMC pleased investors with its financial performance in the third quarter.
Analysts noted that Samsung’s logic components business widened its losses in the third quarter. The company refused to accept lithography equipment from ASML for logic components designed for Samsung’s new contract manufacturing facility under construction in Texas.
In the mobile segment, Samsung was also performing poorly in sales of memory chips. The company’s operating profit in this area decreased by 15% annually to $2 billion.
This year, investment expenditures in the semiconductor sector are expected to reach 34.7 billion dollars. At the same time, Samsung’s net income surpassed analysts’ expectations, exceeding $7 billion, thanks to smartphone and wearable device sales.
Samsung’s total revenue increased by 17% in the new quarter to $57.4 billion. The company is investing in the AI segment and expects memory demand to continue weakening in the mobile segment and PC market.
Previously the smartphone market showed Record growth since the beginning of the pandemic.