New Delhi: SK Hynix and the chip division of Samsung Electronics are anticipated to put up quarterly losses within the second quarter after reporting losses within the earlier three months because the chip downturn drags on, market information confirmed on Sunday.
Samsung is projected to report an working revenue of 100.4 billion received ($76.5 million) for the April-June interval, a 99.3 % drop from the 14.09 trillion received working revenue it registered a yr earlier, in line with a median estimate primarily based on the outlooks by native brokerages, compiled by Yonhap Infomax, the monetary information arm of Yonhap News Agency.
Samsung`s Device Solutions (DS) unit in command of the chip enterprise is forecast to log an working lack of between 3 to 4 trillion received, though that may mark a decline from the 4.58 trillion received working loss within the first quarter.
The dismal earnings outlook got here because the droop within the international chip business is continuous, as individuals and firms scale back spending on tech merchandise amid runaway inflation.
Samsung, the world’s largest reminiscence chip and smartphone maker, reported the worst quarterly revenue in 14 years within the first quarter. Weeks earlier than releasing the earnings, Samsung mentioned it was chopping manufacturing to deal with the reminiscence chip glut.
SK Hynix is anticipated to put up a 3rd consecutive quarterly working lack of 2.86 trillion received within the second quarter after the 1.89 trillion-won loss within the fourth quarter of 2022 and the working lack of 3.4 trillion received within the earlier quarter.
Analysts mentioned the chip market will enhance later this yr because the influence of the reduce within the chip output will kick in and the worldwide demand will decide up.
“We believe that Samsung’s quarterly earnings bottomed out in the first quarter. The second-quarter DRAM output beat the forecast and the inventory levels began to decline,” Kim Dong-won, an analyst at KB Securities, mentioned.
SK Hynix will even see “the average selling prices in DRAM and NAND pick up, which will contribute to slashing the losses in the third quarter,” mentioned Doh Hyun-woo, an analyst at NH Investment & Securities.
