Increasing Inventory
It has been found that Samsung Electronics and SK Hynix had semiconductors in stock worth 7.4024 trillion won and 2.1939 trillion won as of the end of the first quarter of this year, respectively. Samsung Electronics’ amount is the largest among those it has recorded in the first quarters while that of SK Hynix is an all-time high. Semiconductor manufacturers tend to dispose of their stocks before the beginning of a new year and such a rapid increase in inventory in the fourth quarter is almost unprecedented.
For Samsung Electronics, the increase in inventory began last year and is accelerating these days. The amount was approximately three trillion won in 2010 but exceeded four trillion won in 2012 and has been around six trillion won to seven trillion won since last year. It increased by no less than 1.6965 trillion won between the first quarters of 2015 and this year. This can be attributed to a rapid drop in memory semiconductor sales more than anything else. According to its recent report, its memory semiconductor business unit recorded 7.9413 trillion won in quarterly sales in Q1, 2016, 370 billion won less than a year ago.
In the meantime, SK Hynix maintained its inventory stock below 1.5 trillion won in 2014 and most of last year but it rose to 1.9233 trillion won late last year and topped two trillion won in the following quarter. The ratio of its inventory assets to its total assets has continued to rise from 5.6% to 6.5% and then to 7.4% since 2014.
The problem is that things ahead are pretty gloomy for both of them. The global semiconductor industry is predicted to face a cyclical slowdown from this year with the boom during the past two to three years having come to an end.