Samsung's Operating Margin Estimated at 26%
Among the world's top three semiconductor makers, Samsung Electronics posted the smallest operating profit last year, falling behind No. 1 Intel and No. 3 TSMC.
Samsung Electronics' annual sales and operating profit in the semiconductor sector in 2020 were estimated at 73 trillion won and 19 trillion won, respectively. The company is planning to announce its fourth-quarter business results at an earnings conference call on Jan. 28. Its operating profit ratio is estimated at 26 percent.
Intel and TSMC posted higher profits than Samsung Electronics. Intel released its 2020 earnings on Jan. 21. The chipmaker posted about US$77.9 billion in annual sales and about 23.7 billion in operating profit in 2020. Its operating profit ratio stood at around 30 percent.
Taiwan's foundry giant TSMC released its business scorecard on Jan. 14. The company chalked up sales of 1,339.3 billion Taiwan dollars (about 52.9 trillion won) and operating profit of 566.5 billion Taiwan dollars (about 22.4 trillion won) in 2020. Its operating margin hit 42.3 percent, eclipsing those of Samsung Electronics and Intel.
Industry insiders are concerned that Samsung Electronics' global competitiveness may fall due to the absence of its head. The semiconductor industry requires long-term investment as investment effects take about two years to kick in.