Samsung Electronics' 2nd quarter 2022 business performance achieved its best ever business performance in the second quarter, driven by active response to server demand in the semiconductor sector and expansion of system semiconductor supply.

Samsung Electronics announced its business performance for the second quarter of 2022 on the 28th. On a consolidated basis, sales were 77.2036 trillion won, up 21.3% year-on-year, and operating profit was 14.971 trillion won, up 12.2% year-on-year. Net income for the period was 11.988 trillion won, up 15.2% year-on-year.

Samsung Electronics recorded its highest quarterly sales and second-highest ever in the second quarter despite continued difficult business conditions, including inflation and supply chain issues.

The DS (Device Solutions) division actively responded to the strong demand for servers and expanded the supply of system semiconductors, renewing its highest quarterly sales for the second consecutive quarter and driving growth. The DX (Device eXperience) division also saw a significant increase in sales compared to the same period last year due to strong sales of premium smartphones and seasonal home appliances such as air conditioners.

Operating profit decreased in the DX division due to macroeconomic issues such as increased material and logistics costs and negative economic sentiment, but overall, it recorded profit at the same level as the previous quarter. Operating profit margin slightly increased compared to the previous quarter due to improved performance across all DS division businesses. Compared to the same period last year, it increased by 1.53 trillion won, or 12%, centered around the DS division.

In the second half of 2022, uncertainty is expected to continue, centering on the macroeconomy.

Samsung Electronics plans to respond quickly and flexibly through active monitoring of demand situations, etc.

The DS (Device Solutions) division will focus on ▲operating a portfolio centered on high value-added and high capacity ▲expanding advanced processes and new applications. The DX (Device eXperience) division will ▲continue to strengthen its premium leadership and lineup ▲expand the multi-device experience of its 230 million global SmartThings users.

Memory demand for servers is expected to continue, while mobile and PC demand is expected to continue to weaken due to macroeconomic impacts. Samsung Electronics will closely monitor the impact of demand, such as the launch of new mobile products by major customers, and focus on operating a portfolio centered on high added value and high capacity.

System LSI plans to continue expanding its mass-market SoC business while strengthening its market leadership by expanding its 200 million pixel image sensor customer base.

The foundry plans to continuously strengthen its technological competitiveness by focusing on the development of the second-generation GAA process. We also plan to pursue growth that exceeds the market by expanding our global customer base.

SDC (Display) is expected to see performance growth for small and medium-sized panels due to the launch of new smartphone models and the expansion of new applications such as battlefields and games. For large panels, performance improvement is expected due to the end of LCD production and increased demand for QD displays.

MX (Mobile eXperience) plans to popularize foldable phones by generating sales beyond the Galaxy Note through differentiated consumer experiences based on global partnerships. It also plans to expand the Galaxy ecosystem by successfully launching new wearable products and strengthen overall operational efficiency.

The network will actively pursue expansion of its major overseas businesses and respond promptly to the expansion of its domestic 5G network to maintain sales growth. It also plans to continue to strengthen its leadership in 5G core chips and vRAN (virtualized base station) technology.

Although there is uncertainty in demand for video displays, the company plans to expand sales of Neo QLED, ultra-large, and lifestyle strategic products to take the lead in the peak season premium market.

Home appliances will focus on improving profitability by expanding sales of premium products, strengthening B2B and online channels, and reducing costs.

Facility investment in the second quarter was 12.3 trillion won, and by business, it was 10.9 trillion won in the DS division and 0.8 trillion won in SDC.

In the first half of the year, a total of 20.3 trillion won was executed, including 17.6 trillion won in the DS sector and 1.5 trillion won in SDC.

Memory investments were made in preparation for increased demand, similar to the previous quarter, with a focus on infrastructure investment in Pyeongtaek Phase 3 and expansion and process conversion in Hwaseong, Pyeongtaek, and Xi'an.

The foundry's investment was focused on expanding its production capacity for advanced processes below 5 nanometers.