The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Downstream chip inventory begins to fall in 1Q23 We maintain BUY and TP of KRW80,000 on SEC. We continue to have a positive outlook, as key clients’ chip inventories, which increased throughout 2022, have begun
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Memory chip supply-demand dynamics to improve in 2H23 We maintain BUY and TP of KRW80,000 on SEC. Our outlook remains positive, as the 4Q22 earnings disappointment should make the company more inclined to reduc
Amid a slump in the memory semiconductor industry, Japan’s Kioxia Holdings Corp. and Western Digital Corp. of the United States have reportedly revived merger negotiations. Yet, industry insiders believe that the proposed merger stands a slim chance.Bloomberg News reported on Dec. 4 (local time) tha
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. SEC’s 4Q22 OP plunged 60% q-q to W4.3tn, due mainly to deteriorating memory supply-demand conditions. We expect the global chip giant to experience sustained OP decline till 1Q23. Supply-demand improv
Samsung Electronics delivered an earnings shock in the fourth quarter of 2022, with its operating profit plummeting 69 percent. In the aftermath of a global economic slowdown, the company's semiconductor, smartphone, home appliance, and display sales suffered a sharp drop. Experts predict that t
Japan’s Kioxia Holdings Corp., the world's No. 2 NAND flash maker, and fourth-ranked Western Digital Corp. of the United States have revived their merger negotiations, Bloomberg reported on Jan. 4 (local time). If this U.S.-Japan NAND flash alliance becomes a reality, the global NAND flash marke
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Raise target price to KRW80,000 We maintain BUY on SEC and raise our TP by 7% to KRW80,000; we revise 2024E OP up 15% to KRW42.5tn (+91% YoY) to reflect hikes to chip price estimates for 2H23 (DRAM YoY: +5%→+12
Taiwanese newspaper DigiTimes reported that Samsung Electronics may substantially lower its memory chip product prices next year in order to further solidify its market leading position.At present, Samsung Electronics’ share in the global memory chip market is gradually falling. For example, its DRA
SK hynix will showcase a number of its core and brand-new products at CES 2023, the most influential tech event in the world to be held in Las Vegas from Jan. 5-8.The products, introduced under the theme of the “green digital solution,” as part of SK Group’s “carbon-free future” campaign, are expect
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. Despite the slowdown in semiconductor demand due to the global economic recession, HPSP’s sales of high-pressure hydrogen annealing equipment should continue to benefit from tech migration. Based on c
Samsung Electronics has decided to ramp up its wafer production capacities for memories and system semiconductors by around 10 percent in 2023.The company's move is in sharp contrast to those of its rivals such as TSMC, Intel, Micron Technology, and SK Hynix, which all declared a reduction of th
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. SEC’s 4Q22 OP is forecast at W5.89tn (-46% q-q), with the figure to miss consensus due to slowing memory semicon business. We expect the OP downtrend to continue through 2Q23. Supply-demand improvemen
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Cut target price to KRW110,000 We cut our 12m fwd TP for SK hynix to KRW110,000 (2023E BVPS x 1.3x P/B), as 2023E earnings were significantly revised down to reflect expected drops in DRAM/NAND bit growth and A
The author is an analyst of KB Securities. He can be reached at jeff.kim@kbfg.com. -- Ed. Maintain BUY, target price of KRW75,000 We maintain BUY and TP of KRW75,000 on SEC. In the short term, earnings should decline amid the chip downcycle. In the mid/long term, however, capacity ramp-up and R&D ef
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed. Amid deepening IT demand decline, SK Hynix’s sluggish performance is expected to continue into 1H23. Supply-demand improvement is anticipated from 2H23 through active supply control efforts (eg, inves
Samsung Electronics’ foundry sales exceeded its NAND flash sales in the third quarter for the first time.The company's foundry sales came in at US$5.584 billion in the third quarter, according to market research firm TrendForce and analysis reports from securities companies. The sales figure is
Global NAND flash sales in the third quarter of this year plunged by 24 percent from the previous quarter, market intelligence provider TrendForce said on Nov. 24. Sales and market shares of major chipmakers such as Samsung Electronics and SK Hynix continued to decline.NAND flash sales in the third
Among 56 major items and services, including electronics, batteries, and shipbuilding, Korean companies ranked first in the world in five product categories, including semiconductors and smartphones, according to a survey. The No. 1 items were all produced by Samsung Electronics.The Nihon Keizai Shi
Apple has reportedly given up its plan to purchase NAND flashes for the iPhone series from Yangtze Memory Technology (YMTC), a Chinese state-run semiconductor company, and instead will partner with Samsung Electronics.Apple has scratched off its plan to purchase 3D NAND flashes from YMTC for iPhones
The operating rate of Korean information technology (IT) companies fell in the third quarter of this year. They include Samsung Electronics. Its smartphone factory utilization rate hit a record low.Samsung Electronics’ handheld player (HHP) factory utilization rate stood at 72.2 percent, down 8.1 pe