Samsung Electronics Q3 Inventory Assets 55 Trillion Won... Semiconductor Inventory at 33 Trillion Won Level

DS Inventory Increased by 16.1% Compared to Last Year-End
SK Hynix Inventory Decreased by 4.6%

Due to the global economic downturn, Samsung Electronics and SK Hynix semiconductor inventory assets remained at high levels in the third quarter of this year.

According to the quarterly reports disclosed by each company on the 14th, as of the end of September this year, Samsung Electronics' inventory assets amounted to 55.256 trillion KRW, an increase of 3.0681 trillion KRW (5.9%) compared to 52.1878 trillion KRW at the end of last year.

Inventory in the Device Solutions (DS) division, which handles semiconductors, rose from 29.0576 trillion KRW at the end of last year to 33.7307 trillion KRW at the end of the third quarter this year, an increase of 4.6731 trillion KRW (16.1%). Compared to 16.4551 trillion KRW at the end of 2021, the DS division's inventory assets have more than doubled.

On the other hand, SK Hynix's inventory assets decreased by 716.8 billion KRW (4.6%) from 15.6647 trillion KRW at the end of last year to 14.9479 trillion KRW at the end of September this year. SK Hynix's inventory assets have also more than doubled compared to 5.4954 trillion KRW at the end of 2021.

Combining the third-quarter inventories of Samsung Electronics' DS division and SK Hynix amounts to 48.6786 trillion KRW. This is an increase of 3.9563 trillion KRW (8.8%) compared to 44.7223 trillion KRW at the end of last year. The proportion of inventory assets in total assets increased from 11.6% at the end of last year to 12.2% at the end of the third quarter for Samsung Electronics, while it decreased from 15.1% to 14.6% for SK Hynix.

During the same period, the inventory turnover ratio decreased from 4.1 times to 3.3 times for Samsung Electronics and from 2.4 times to 2.1 times for SK Hynix. The inventory turnover ratio is calculated by dividing the cost of goods sold by inventory assets and measures the speed at which a company sells its inventory assets. A higher turnover ratio indicates that inventory assets are being converted into sales more quickly.

Meanwhile, Samsung Electronics' sales composition by division in the first half of the year was 68.2% for the DX division including TVs, 23.5% for the DS division including DRAM and NAND flash, 11.2% for the SDC (Display) division, 5.5% for Harman, and -8.4% for others (including elimination of inter-divisional transactions).

Major customers included Apple, Best Buy, Deutsche Telekom, Qualcomm, and Verizon. The sales proportion to these top five customers accounted for approximately 15% of total sales.

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