Despite Samsung Electronics entering the era of 300 trillion won in sales in 2022, its operating profit showed a sluggish performance, decreasing 16% compared to last year due to memory inventory adjustments and price drops amid the global market recession.

Samsung Electronics announced its business performance for the fourth quarter of 2022 on the 31st. According to this, consolidated sales for the fourth quarter of 2022 were 70.4646 trillion won, down 7.97% year-on-year, and operating profit was 4.3061 trillion won, down 68.95% year-on-year. Net income for the period was 23.8415 trillion won, up 119.98% year-on-year.

The annual business performance for 2022 was KRW 302.2314 trillion in consolidated sales, an 8.09% increase from the previous year, and operating profit was KRW 43.3766 trillion, a 15.99% decrease from the previous year. Net income increased 39.46% year-on-year to KRW 55.6541 trillion.

Memory saw a sharp decline in performance as prices fell sharply amid continued inventory adjustments by customers amid the impact of inventory asset valuation losses.

On the other hand, the foundry achieved its highest quarterly and annual sales by expanding sales to major customers, and increased profits year-on-year by expanding production capacity centered on advanced processes and diversifying customers.

Display performance declined compared to the previous quarter due to a decrease in demand for smartphones in small and medium-sized businesses, but achieved solid performance centered on sales of flagship products. The deficit narrowed as sales of QD-OLED for TVs expanded during the peak season at the end of the year and LCD inventory was depleted.

Smartphone sales and profits both declined due to slowing sales and weak demand in the low- to mid-priced market.

The network's sales increased due to the expansion of domestic 5G networks and overseas business in North America and other regions.

VD actively responded to the increase in demand during the peak season at the end of the year and increased both sales and profits by focusing on sales of premium products such as Neo QLED and ultra-large screens.

Home appliances saw their profitability decline due to increased costs resulting from a worsening market and intensifying competition.

Harman achieved its best quarter ever for the second consecutive quarter, driven by increased sales in its home appliance business and robust consumer audio sales.

Facility investment amounted to KRW 53.1 trillion per year, with DS recording KRW 47.9 trillion and SDC KRW 2.5 trillion.

In the case of memory, investments were made mainly to expand the application of cutting-edge technologies such as EUV to enhance future competitiveness and infrastructure for Pyeongtaek 3 and 4, and to secure next-generation research and development infrastructure.

The foundry focused its investment on expanding its advanced process production capacity in Pyeongtaek, initial 3nm production capacity to meet future demand, and building infrastructure at its Taylor plant in the United States.

SDC focused on expanding small and medium-sized flexible production capacity and investing in infrastructure

The first quarter is expected to be a period of continued weakness in global IT demand and the semiconductor market, but it is expected that the short-term weakness will continue and demand will begin to recover in the second half of the year.

Samsung Electronics plans to respond promptly to the growing demand by investing in infrastructure for the future and focusing on high-capacity products for servers and mobile devices.