Samsung Posts 106 Trillion Won Memory Profit Amid Other Business Losses

In the third quarter of 2023, Samsung Electronics achieved record-high results across various business divisions, with notable disparities in profits. The semiconductor business, driven by artificial intelligence (AI) semiconductors, recorded an operating profit exceeding 100 trillion won, while other divisions faced losses. Rising memory prices contributed to higher profits in the semiconductor unit but also acted as a cost burden for finished product businesses.

The Device Solutions (DS) Unit, responsible for semiconductor business divisions, reported a sales figure of 147.1 trillion won and an operating profit of 106.5 trillion won, marking a 344% and 1421% increase from the same period last year, respectively. This surpassed their previous quarterly record. Sales in the Device eXperience (DX) Unit, overseeing finished product businesses, increased by 8% year-over-year, but the unit reported a 800 billion won operating loss, reversing the surplus from the same period last year.

The Mobile eXperience (MX) division and Networks saw a 11% sales growth and a 600 billion won operating loss due to rising memory costs and sluggish network business performance.

Samsung Electronics anticipates that the trend of high memory prices will persist into the fourth quarter. The company plans to maintain profitability through a focus on premium product sales and cost reduction measures. The TV and home appliance businesses also struggled, recording an operating loss of 200 billion won. However, the display and automotive components divisions performed relatively well, with Samsung Display recording 1.1 trillion won in operating profit and Harman reporting a 600 billion won operating profit.

Samsung Electronics expects continued growth in the semiconductor-driven businesses, while the finished product units are likely to face ongoing profitability challenges.