By Hyunjoo Jin and Heekyong Yang
SEOUL (Reuters) -Samsung Electronics mentioned its third-quarter revenue jumped from a 12 months earlier, however the tempo of restoration weakened from the prior quarter because it struggles to money in on the AI growth that has benefited chip rivals like TSMC and SK Hynix.
The world’s greatest maker of reminiscence chips, smartphones and TVs mentioned it anticipated restricted earnings progress within the present quarter, as progress in chip division can be offset by weak spot in its “set” enterprise. The latter sometimes refers to smartphones, TVs and residential home equipment, nevertheless it didn’t elaborate additional.
Samsung (KS:) posted on Thursday an working revenue of 9.2 trillion received ($6.66 billion) within the July to September interval, in contrast with 2.4 trillion received a 12 months earlier and 10.4 trillion received the earlier quarter.
The third-quarter outcome was barely above Samsung’s preliminary estimate of 9.1 trillion received flagged earlier this month, which was under market expectations on the time. Shares fell 0.2% in early buying and selling on Thursday, with the broader South Korean market down 1.3%.
The South Korean firm this month made a uncommon apology for its disappointing earnings, citing “delays” in gross sales of its superior chips to an unidentified main buyer and rising provide of conventional chips from Chinese language rivals.
Synthetic intelligence is the one brilliant spot within the sluggish chip market, however Samsung has been struggling to produce high-end semiconductors utilized in Nvidia (NASDAQ:)’s AI chipsets, making the South Korean firm extra weak to lacklustre demand for conventional chips utilized in PCs and smartphones.
CHIP EARNINGS FALL
Samsung’s chip division swung to an working revenue of three.9 trillion received within the third quarter from a lack of 3.8 trillion received a 12 months earlier, however that was down from 6.45 trillion received the previous quarter, because the chip market restoration remained weak.
“The demand traits skilled within the earlier quarter are anticipated to proceed,” the corporate mentioned, referring to the outlook for the semiconductor market within the fourth quarter.
Samsung mentioned its chip earnings had been damage by one-off bills corresponding to the supply of worker incentives, and forex results as a consequence of a weak greenback.
SK Hynix had posted a file third-quarter working revenue of seven trillion received and TSMC additionally had a powerful outcome throughout that interval due to AI chip gross sales to business chief Nvidia.
Samsung is struggling to compete towards rivals not solely in its mainstay reminiscence chip enterprise, but in addition in its foundry enterprise that designs and produces logic chips for different purchasers. Analysts say Samsung’s logic chip enterprise suffered from widening losses within the third quarter.
The corporate has postponed taking deliveries of ASML (AS:)’s high-end chipmaking gear for its upcoming manufacturing unit in Texas because it has but to win any main prospects for the mission, sources beforehand informed Reuters.
Samsung’s cellular gadgets enterprise additionally noticed its third-quarter working revenue dropping to 2.8 trillion received from 3.3 trillion received a 12 months earlier.
($1 = 1,380.3900 received)
