A Stellar Performance

Samsung Electronics employees celebrate mass production of 3-nm chips by signaling the number 3 with their fingers.

Samsung Electronics is believed to have earned more than 2 trillion won in operating profit in the foundry business last year.

Securities companies estimate that Samsung Electronics’ foundry and system LSI divisions posted about 29.93 trillion won in their combined sales and 2.6 trillion won to 3.5 trillion won in their combined operating profit last year. This means the company's operating profit in the foundry business probably topped two trillion won, with its operating profit margin believed to have exceeded 10 percent.

Some analysts say Samsung Electronics may suffer a deficit in its semiconductor business in 2023 due to deteriorating memory market conditions. SK Hynix logged a deficit in the memory semiconductor business in the fourth quarter of 2022. Under these circumstances, Samsung's stellar business performance in the foundry business is highly encouraging.

Insiders of the financial investment industry predict that Samsung's foundry sales in 2023 will be similar to those of 2022, while its foundry operating profit can further grow. They believe that demand will recover in the second half of this year, centering on chips for high-performance computing (HPC), data centers, and automobiles. 

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