"Samsung Electronics' External Growth Led by Semiconductors with Record Quarterly Sales Last Year (Supplement)"

Samsung Electronics Announces Last Year's Business Performance
Revenue 279.6 Trillion KRW · Operating Profit 51.6 Trillion KRW

Samsung Electronics Seocho Building / Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Choi Dae-yeol] Samsung Electronics announced on the 27th that its consolidated operating profit last year reached 51.6339 trillion KRW, a 43.5% increase compared to the previous year. Sales rose 18.1% during the same period to 279.6048 trillion KRW.

All four quarters last year recorded the highest sales ever, setting a record for annual sales as well. The company explained, "Despite ongoing uncertainties, we achieved record sales based on differentiated products and technological competitiveness."

By business division, the components (DS) sector, especially semiconductor performance, was strong. Semiconductor sales reached 94.16 trillion KRW, a 29% increase from the previous year. In particular, memory sales led the growth trend with 72.6 trillion KRW. The display division posted sales of 31.71 trillion KRW, a 4% increase during the same period. The DS division's total operating profit was 33.73 trillion KRW, more than a 50% increase compared to one year ago. The home appliances division (CE) recorded sales of 55.83 trillion KRW, an 18% increase during the same period. Operating profit was 3.65 trillion KRW, similar to the previous year.

The IM division's sales last year were 109.25 trillion KRW, with operating profit at 13.65 trillion KRW. Looking at the fourth quarter alone, operating profit was 13.87 trillion KRW and sales were 76.57 trillion KRW. These figures represent increases of approximately 53% and 24%, respectively, compared to one year earlier. The company explained that the 2% decrease in fourth-quarter operating profit compared to the previous third quarter was due to special incentives, memory price declines, and increased year-end marketing expenses for smartphones.

The company stated that in the first quarter of this year, it plans to continue external growth by increasing supply across major business divisions while focusing on improving profitability. Samsung Electronics said, "In the first quarter, the components business will actively respond to customer demand by increasing differentiated products amid expectations of memory demand recovery," adding, "The foundry will pursue yield stabilization and expand supply of key components for flagship products." It further stated, "The set business will strengthen premium leadership by launching new smartphones and TVs, focusing on maintaining solid profitability."

Regarding the annual outlook, the company acknowledged that uncertainties related to COVID-19, ongoing for three years, remain, but it expects IT demand to recover worldwide and plans to respond accordingly. The company said, "In the components business, we will increase advanced processes and enhance leadership in next-generation products and technologies," and "In the set business, we will continuously strengthen premium leadership and product lineup, and enhance consistent and convenient connectivity between devices to provide new user experiences."

Meanwhile, the company's facility investment last year was estimated at around 48.2 trillion KRW. By business, the semiconductor division accounted for most of it with 43.6 trillion KRW, and the display division invested about 2.6 trillion KRW. To meet demand for advanced processes in memory, facilities in Pyeongtaek and Xi'an were expanded or processes converted. The foundry expanded mainly around advanced processes in Pyeongtaek, and the display division focused investments on small- and medium-sized modules and QD displays.

This content was produced with the assistance of AI translation services.