Korea, April 28, 2022 — Samsung Electronics today reported financial results for the first quarter ended March 31, 2022.

The Company posted a record consolidated revenue for the third straight quarter of KRW 77.78 trillion and operating profit of KRW 14.12 trillion, a 51% increase from a year earlier. The DX (Device eXperience) Division posted the highest revenue since 2013 while the DS (Device Solutions) Division reported a historical high for quarterly revenue.

The Memory Business achieved a record-high in quarterly sales for servers amid solid demand and results at the System LSI Business improved sequentially as prices increased. For the Foundry Business, demand was solid across all applications and the Company increased the portion of advanced processes.

SDC (Samsung Display Corporation) saw record first quarter results for mobile displays driven by strong sales at major smartphone customers, while for large displays the improvement of production yield of quantum-dot (QD) displays exceeded expectations.

The MX (Mobile eXperience) Business posted sequential increases in revenue and profitability thanks to strong sales of Galaxy S22 Ultra, positive responses to new, mass market 5G models and solid sales of Device Ecosystem products including tablets and watches. The Networks Business continued to expand overseas and met domestic 5G expansion needs.

Revenue at the Visual Display Business increased year-over-year with higher sales of premium, high-value products such as Neo QLED and Super Big TVs. The Digital Appliances Business posted a record high quarterly revenue driven by growth of premium products, centering on BESPOKE.

The strength in the US dollar against the Korean won outweighed the weakness in some emerging currencies, leading to a positive impact of approximately KRW 300 billion on operating profit compared to the previous quarter.

In the second quarter, while macroeconomic uncertainties and logistics issues are expected to persist, the DS Division will work to meet solid demand and the DX Division will focus on securing profitability with higher sales of new smartphone and TV products.

The Memory Business will work to meet the expected solid demand centering on server and expand the sales of high-value-added products. The System LSI Business will focus on maximizing supply of key components, such as SoCs and image sensors. For Foundry, the Company will solidify its technology leadership with the world’s first mass production of the 3-nanometer GAA process and continue to win new customers.

As for SDC, mobile displays is expected to maintain solid results year-on-year, driven by continued solid demand from major smartphone customers. In large displays, revenue is expected to increase with the release of TVs featuring QD displays. In the second quarter, LCD production will continue to ramp down as originally planned.

In the MX Business, revenue is expected to grow significantly year-on-year due to solid sales of Galaxy S22 series and higher sales of new mass market 5G models. The Company expects to achieve solid profitability by utilizing global SCM capabilities, despite macroeconomic uncertainties. For the Networks Business, the Company aims to win new business opportunities.

The Visual Display Business will focus on selling new models, including Neo QLED and The Freestyle, while the Digital Appliances Business will aim higher revenue and profitability by improving product mix with increased availability of BESPOKE products in the global market.

In the second half, while uncertainties related to the macroeconomic environment and geopolitical issues are likely to persist, the Company will prioritize increasing the portion of advanced processes for components and strengthen the premium lineup and leadership position in the DX Division.

In the Memory Business, server demand is expected to remain solid and the Company plans to increase sales of next-generation interfaces, such as DDR5 and LPDDR5. The System LSI Business will focus on expansion of its SoC lineup and the Foundry Business will seek to achieve meaningful profit by improving advanced node yields and increasing its portion of sales.

For SDC, sales is expected to increase in mobile displays driven by expansion of foldable products and accelerated adoption of OLED in new applications, such as IT, gaming, and automotive. The large display business will try to establish a leadership position in the premium segment and narrow losses with QD displays.

The MX Business expects to maintain a solid level of profitability with the expansion of the premium user base and by maximizing sales of new foldable products and increasing sales of new Device Ecosystem products. For the Networks Business, the Company will maintain growth by meeting domestic 5G needs and actively expanding in overseas markets as well as continuing to reinforce leadership in vRAN (virtualized Radio Access Network) technology.

In the Visual Display Business, the Company will strengthen its premium market position by expanding sales of differentiated strategic products, such as Neo QLED 8K and Lifestyle products. The Digital Appliances Business will continue to focus on increasing sales of premium products amid ongoing material cost and logistics issues.

The Company’s capital expenditures in the first quarter stood at KRW 7.9 trillion, including KRW 6.7 trillion spent on semiconductors and KRW 0.7 trillion on displays. Spending on memory was concentrated on infrastructure at P3 and on process migrations at fabs in Hwaseong, Pyeongtaek and Xi’an. Foundry investments were focused on developing and establishing the production capacity of under 5-nanometer advanced processes.

To read the full release, visit this link.

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Source: Samsung