Samsung & SK Hynix this year sales to reach KRW 110 trillion…58 % up YoY
Park Seul Gee | seul@ | 2017-09-19 09:49:31
The Korean semiconductor industry is expected to record sales of KRW 110 trillion for the first time this year.
Samsung Electronics and SK Hynix have been enjoying preemptive investment since the memory semiconductor market, which is leading the market, has continued to go high. Both companies have invested about KRW 90 trillion in domestic and overseas semiconductor facilities.
Baek Woon-kyu, the Minister of Commerce, Industry and Energy, stated, "I congratulate Samsung Electronics for top ranking in Intel," stated Kwon Oh-hyeon, Vice President of Samsung Electronics at the "Industry-Semiconductor Display Industry Meeting" held at Kensington Hotel in Yeouido, Seoul.
In the second quarter of this year, Samsung Electronics sold KRW 17.58 trillion in the semiconductor sector, which is about 1 trillion won higher than Intel`s sales of USD 14.8 billion (about KRW 16.7 trillion). Samsung Electronics has been sitting on top of Intel`s No. 1 spot in the semiconductor industry for 25 years.
This is due to Samsung Electronics` flagship product, the memory semiconductor market, is more profitable than Intel`s main CPU (central processing unit) market. "I wonder if chip profitability per wafer is worse than Intel," Mr. Baek mentioned. DRAM and NAND flash prices rose 2.4 times and 1.5 times, respectively, from the same month last year, according to semiconductor market researcher DRAMExchange.
In the case of semiconductor industry, there was a concern that the memory market would decline in the second half. However, Apple`s iPhone 8, iPhone 8, iPhone X and Samsung`s Galaxy Note 8 will be released in the second half of the year. Therefore, memory semiconductor prices are continuing to peak in demand as demand for servers is still high.
Samsung Electronics` semiconductors division and SK Hynix`s sales this year are estimated at KRW 79 trillion and KRW 29 trillion, respectively, and total sales of both companies are expected to reach a record high of 108 trillion won. The total sales of the two companies last year is 68.36 trillion won, a 58% increase over the one year. Earlier, Samsung Electronics and SK Hynix recorded a record KRW 46.22 trillion in semiconductor sales in the first half of this year.
Memory Semiconductor`s "super-cycle (long-term boom)" will continue next year, with sales of domestic semiconductor companies such as Samsung Electronics and SK Hynix estimated at KRW 93.3 trillion and KRW 32.3 trillion respectively.
However, there are concerns that the semiconductor industry may not be able to keep up with growth in some areas.
Samsung Electronics and SK Hynix are in the midst of securing future food. Samsung Electronics is expanding its semiconductor supply capacity by investing about 30 trillion won in the Pyeongtaek plant, KRW 6 trillion in the Hwasung plant, KRW 7.8 trillion in the Sien plant, and KRW 1.7 trillion in the Austin plant by 2021. SK Hynix has built three semiconductor factories, including M14, in Icheon, Gyeonggi, and Chungju in Chungju, with a total investment of 46 trillion won as part of its mid- to long-term plan.
By Park Seul Gee seul@
[ copyright ⓒ The Digitaltimes ]
Samsung Electronics and SK Hynix have been enjoying preemptive investment since the memory semiconductor market, which is leading the market, has continued to go high. Both companies have invested about KRW 90 trillion in domestic and overseas semiconductor facilities.
Baek Woon-kyu, the Minister of Commerce, Industry and Energy, stated, "I congratulate Samsung Electronics for top ranking in Intel," stated Kwon Oh-hyeon, Vice President of Samsung Electronics at the "Industry-Semiconductor Display Industry Meeting" held at Kensington Hotel in Yeouido, Seoul.
In the second quarter of this year, Samsung Electronics sold KRW 17.58 trillion in the semiconductor sector, which is about 1 trillion won higher than Intel`s sales of USD 14.8 billion (about KRW 16.7 trillion). Samsung Electronics has been sitting on top of Intel`s No. 1 spot in the semiconductor industry for 25 years.
This is due to Samsung Electronics` flagship product, the memory semiconductor market, is more profitable than Intel`s main CPU (central processing unit) market. "I wonder if chip profitability per wafer is worse than Intel," Mr. Baek mentioned. DRAM and NAND flash prices rose 2.4 times and 1.5 times, respectively, from the same month last year, according to semiconductor market researcher DRAMExchange.
In the case of semiconductor industry, there was a concern that the memory market would decline in the second half. However, Apple`s iPhone 8, iPhone 8, iPhone X and Samsung`s Galaxy Note 8 will be released in the second half of the year. Therefore, memory semiconductor prices are continuing to peak in demand as demand for servers is still high.
Samsung Electronics` semiconductors division and SK Hynix`s sales this year are estimated at KRW 79 trillion and KRW 29 trillion, respectively, and total sales of both companies are expected to reach a record high of 108 trillion won. The total sales of the two companies last year is 68.36 trillion won, a 58% increase over the one year. Earlier, Samsung Electronics and SK Hynix recorded a record KRW 46.22 trillion in semiconductor sales in the first half of this year.
Memory Semiconductor`s "super-cycle (long-term boom)" will continue next year, with sales of domestic semiconductor companies such as Samsung Electronics and SK Hynix estimated at KRW 93.3 trillion and KRW 32.3 trillion respectively.
However, there are concerns that the semiconductor industry may not be able to keep up with growth in some areas.
Samsung Electronics and SK Hynix are in the midst of securing future food. Samsung Electronics is expanding its semiconductor supply capacity by investing about 30 trillion won in the Pyeongtaek plant, KRW 6 trillion in the Hwasung plant, KRW 7.8 trillion in the Sien plant, and KRW 1.7 trillion in the Austin plant by 2021. SK Hynix has built three semiconductor factories, including M14, in Icheon, Gyeonggi, and Chungju in Chungju, with a total investment of 46 trillion won as part of its mid- to long-term plan.
By Park Seul Gee seul@