Operating profit decreased by KRW 30 trillion year-on-year, with the parts sector leading the way.
Development of 4th generation 10nm DRAM and 7th generation V-NAND this year
Preparing for the 4.3nm process to strengthen foundry competitiveness


Samsung Electronics held its 51st regular shareholders' meeting on the 18th at the Suwon Convention Center in Suwon, Gyeonggi Province, with approximately 400 shareholders, institutional investors, and executives in attendance.

In his opening remarks, Vice Chairman Kim Ki-nam said, “Last year, difficult business conditions continued, including stagnant global economic growth, a sluggish memory industry, and intensifying competition in the set business,” and added, “Our 2019 business performance slowed down compared to the previous year, recording consolidated sales of KRW 230 trillion and operating profit of KRW 28 trillion.”

Samsung Electronics' 2018 business performance was KRW 243.77 trillion in sales and KRW 58.89 trillion in operating profit.

Prior to the agenda, Vice Chairman Kim Ki-nam, Head of DS Division, President Kim Hyeon-seok, Head of CE Division, and President Koh Dong-jin, Head of IM Division, explained the management status of each business division and answered questions from shareholders in attendance.

Samsung Electronics achieved sales of 95.5 trillion won and operating profit of 15.6 trillion won in the components sector last year.

In memory, we maintained our competitive edge as the global number one. In the foundry sector, the company mass-produced 7nm Extreme Ultra Violet (EUV) technology and commercialized 100-megapixel image sensors and embedded Magnetic Random Access Memory (eMRAM) solutions. In the system LSI sector, the company commercialized a 5G modem SoC and developed a high-resolution image sensor, achieving the top market share in China. In the display sector, the company has completed products such as premium hole displays for smartphones and 8K TVs.

Samsung Electronics plans to develop 4th-generation 10nm-class DRAM and 7th-generation V-NAND this year, expand its 5nm process, and develop 4nm and 3nm processes. It also plans to secure a next-generation technology foundation for business expansion into AI, automotive electronics, and other sectors. Furthermore, it will continue to enhance the price competitiveness of small and medium-sized displays and advance the sophistication of large displays.

The CE division recorded sales of KRW 44.8 trillion and operating profit of KRW 2.6 trillion, both representing year-over-year increases.

Samsung Electronics plans to expand its distribution network for B2B products like built-in appliances and system air conditioners by partnering with construction companies, kitchen distribution companies, and installation specialists. It also plans to continue strengthening its home IoT business by leveraging its AI and IoT technologies. Through collaborations with construction companies, the company plans to spearhead the expansion of its home IoT platform and continue developing IoT solutions for specific spaces, such as the kitchen and living room.

The IM division recorded sales of 107 trillion won and operating profit of 9.3 trillion won. Sales increased slightly compared to the previous year, but operating profit decreased.

Samsung Electronics plans to launch differentiated premium smartphones and strengthen its entry-level smartphone lineup this year. It also plans to enhance connectivity between devices, including PCs, tablets, smartwatches, and wireless earphones. In the network business, the company plans to leverage its experience in commercializing a nationwide 5G network in Korea, building on its 5G end-to-end solutions—from chipsets to terminals and network equipment—to advance its overseas 5G business.