Samsung Electronics’ Invests KRW 27 Trillion in OLED and NAND Flash

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Despite of the tremors of explosive Galaxy Note 7 sent down Samsung Electronics finances, the company reported operating profits surpassed KRW 5 trillion (US $4.37 billion) during third quarter of 2016, driven by its semiconductors and display businesses, reported Business Korea.

The Korean electronic conglomerate announced its annual investment in facilities in 2016 will peak to a record high of KRW 27 trillion (US $23.59 billion) following the publication of its third quarter financial results. Nearly half of the budget set aside will be invested in semiconductors amounting to KRW 13.2 trillion, out of this sum about 80% will be pumped into the company’s memory semiconductors. The remaining 20% will trickle into its system semiconductors, including the foundry business. The Korean company will also invest KRW 10.9 trillion in the display business.

Samsung Electronics has invested KRW 14.7 trillion in its facilities until third quarter, and it will inject KRW 12.3 trillion won during fourth quarter alone.

An official from Samsung Electronics said, “We will focus our investments in plants that produce 3D NAND flash memory chips and organic light emitting diode (OLED) panels, which have global demands that are highly likely to rapidly grow next year, in the fourth quarter.”

Samsung Electronics has a 30% to 40% stake in the memory semiconductor market, such as DRAM and NAND flash chips. Its display subsidiary, Samsung Display for instance has a 90% share in the global small and mid-sized OLED display market, intends to improve its share in the semiconductor and display market to raise the production of next-generation V-NAND and OLED products.

Samsung Electronics maintained its market competitiveness in semiconductor and display business, and has been operating well in the aftermath of the discontinuation of Galaxy Note 7, which caused its operating loss to reach KRW 2.6 trillion during third quarter alone. Samsung Electronics revenue and sales peaked to KRW 47.82 trillion last quarter, and its operating profits reached KRW 5.2 trillion.

Samsung’s operating profits dropped to the lowest point in eight months during third quarter to KRW 4.06 trillion (US$3.55 billion) of third quarter of 2014. Samsung Electronics IT& Mobile Communications (IM) business operating profits plummeted 95.8% YoY in 2016 to KRW 100 billion.

Still, the company’s memory and system LSI business under its Device Solutions (DS) division was a recorded KRW 3.37 trillion in operating profits, while Samsung Display reported KRW 1.02 trillion, raising Samsung Electronics’ operating profits to KRW 5 trillion. The company’s TV and home appliances manufacturing division, Samsung Electronics’ Consumer Electronics, reported about KRW 770 billion.

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