Samsung Electronics' 2nd quarter 2024 business performance was good, driven by improvements in memory semiconductors.

Samsung Electronics announced its business performance for the second quarter of 2024 on the 31st. According to this, sales on a consolidated financial statement basis were 74.683 trillion won, up 23.4% year-on-year, and operating profit was 10.4439 trillion won, up 1,462.3% year-on-year. Net income for the period was 9.8413 trillion won, up 471% year-on-year.

The DS (Device Solutions) division recorded sales of KRW 28.56 trillion and operating profit of KRW 6.45 trillion.

Memory saw a significant improvement in performance due to strong demand for products for generative AI servers, including DDR5, server SSD, and HBM (High Bandwidth Memory), while foundry saw its number of customers roughly double due to increased orders for advanced processes below 5nm.

The DX (Device eXperience) division recorded sales of KRW 42.7 trillion and operating profit of KRW 2.72 trillion.

MX (Mobile eXperience) sales decreased compared to the first quarter when new models were released, as the smartphone market's off-season continued in the second quarter. The S24 series, which continues to see brisk sales, achieved double-digit growth in both shipments and sales in the second quarter and first half of the year compared to the previous year.

VD (Visual Display) sales increased year-on-year, centered on growth in advanced markets, driven by special events such as large-scale global sporting events.

Harman recorded sales of 3.62 trillion won and operating profit of 320 billion won.

SDC recorded sales of KRW 7.65 trillion and operating profit of KRW 1.1 trillion. Display performance improved as sales increased compared to the previous quarter due to solid demand for flagship products and strengthening of the rigid sales base for small and medium-sized panels.

Facility investment in the second quarter was KRW 12.1 trillion, including KRW 9.9 trillion in DS and KRW 1.8 trillion in displays. This is an increase of KRW 800 billion compared to the previous quarter.

Regarding the outlook for the second half of the year, demand for server memory products such as HBM, DDR5, and SSD for building AI servers in the market is expected to remain strong as major cloud service providers and general companies expand their investments in AI servers.

System LSI plans to focus its business capabilities on ensuring a stable supply of Exynos 2500 for flagship products. The initial market response to wearable products using the industry’s first 3nm SoC is positive, and the expansion of SoC adoption models by major trading partners is expected in the second half of the year.

Foundry is expected to see increased demand for products in the AI and high-performance computing sectors as demand for mobile products recovers. The market is expected to grow centered on leading nodes.

Samsung Electronics expects sales growth this year that exceeds the market growth rate by expanding its advanced process business and starting full-scale mass production of the GAA 3nm 2nd generation process. We plan to continue expanding orders in the AI and high-performance computing fields in the second half of the year.

MX is expected to drive market growth centered on premium products, driven by increasing demand for AI and the launch of new form factor products.

VD plans to lead market growth by focusing on sales of its flagship products, such as Neo QLED and OLED, amid expectations that the overall TV market demand will recover due to the growth in demand for premium products and the continued trend toward larger screens.

Harman plans to strengthen its business capabilities by expanding orders for new areas in the battlefield sector, and for small and medium-sized displays, sales are expected to increase due to new product launches by major customers and the recent increase in demand for replacement of AI smartphones, but competition among companies is expected to intensify compared to the first half of the year.