Samsung Electronics posted its best-ever second-quarter performance, driven by increased semiconductor shipments and price increases, rising display prices, and robust profitability in its wireless business.

Samsung Electronics announced its second-quarter 2021 financial results on the 29th. According to the results, consolidated sales reached KRW 63.67 trillion, a 20.2% increase year-over-year, and operating profit reached KRW 12.56 trillion, a 54.3% increase year-over-year. Net income increased 73.4% year-on-year to KRW 9.6345 trillion.

Despite the slowdown in smartphone sales due to the off-season and component shortages, the company recorded its highest-ever sales for the second quarter, actively responding to memory demand centered on servers and also showing brisk sales of premium home appliances.

Compared to the same period last year, it increased by 20.2%, mainly in memory, TV, and home appliances.

Operating profit improved as the memory market improved and the foundry's Austin plant returned to normal, while display performance also improved due to higher selling prices and one-time gains.

The set business also maintained solid profitability through active utilization of SCM (supply chain management) capabilities despite difficult conditions such as a shortage of parts.

Semiconductors recorded sales of KRW 22.74 trillion and operating profit of KRW 6.93 trillion in the second quarter, showing a significant improvement in performance compared to the previous quarter and the same period last year.

Memory shipments exceeded guidance, prices rose more than expected, and cost competitiveness was strengthened.

System semiconductors also saw increased profits thanks to the normalization of operations at the Austin plant.

The display division recorded sales of KRW 6.87 trillion and operating profit of KRW 1.28 trillion in the second quarter.

Even among small and medium-sized businesses, overall sales prices rose and one-time profits were generated, resulting in improved performance compared to the previous quarter.

The IM (IT & Mobile Communications) division recorded sales of KRW 22.67 trillion and operating profit of KRW 3.24 trillion in the second quarter.

Wireless saw a decline in smartphone sales compared to the previous quarter due to a shortage of parts during the off-season and production disruptions caused by COVID-19. However, the company maintained solid profitability through the efficient use of supply chain management (SCM) capabilities, improved cost structure, increased marketing efficiency, and the continued contribution of tablet and wearable products to performance.
> The CE (Consumer Electronics) division recorded sales of KRW 13.4 trillion and operating profit of KRW 1.06 trillion in the second quarter.

CE continued its strong performance, driven by sustained pent-up demand and expanded sales of premium products.

The parts business is expected to see overall positive market conditions in the second half of the year, and the company plans to focus on enhancing its product and technological leadership.

The company plans to continue to achieve solid profitability by strengthening its premium leadership and lineup.

On the other hand, disruptions in parts supply and uncertainty related to the coronavirus are expected to continue.

By business, in the memory sector, server and mobile demand is expected to continue to grow due to the expansion of new CPU adoption and the launch of new smartphone products by major customers.

Samsung Electronics plans to enhance its market leadership by accelerating the transition to 15nm DRAM and 6th-generation V-NAND and expanding the application of EUV to DRAM.

System semiconductors are expected to see increased demand for key system LSI products as the smartphone market enters its peak season. Foundries plan to accelerate growth by expanding supply capacity at the Pyeongtaek S5 line and realizing supply prices to establish a foundation for future investment.

Display is expected to focus on establishing a mass production system for QD displays within the year, amid expectations that small and medium-sized panel performance will improve with the launch of new flagship products by major customers.

Wireless plans to actively promote the foldable trend by launching new foldable products that innovate product competitiveness and user experience.

In addition, the company plans to expand its mid- to low-priced 5G models to enhance its lineup competitiveness, while continuously expanding sales of its "Galaxy Ecosystem" product line to focus on achieving solid sales and profits.

The network plans to pursue sales growth in key markets such as North America and expand orders in new markets such as Europe..

CE plans to solidify its premium leadership by expanding sales of high-value-added TVs such as 'Neo QLED' and ultra-large TVs, and focus on sales growth by strengthening global sales of 'BESPOKE'.

Facility investment in the second quarter was 13.6 trillion won, and by business, it was 12.5 trillion won for semiconductors and 600 billion won for displays.

A total of 23.3 trillion won was spent in the first half of the year, including 20.9 trillion won in semiconductors and 1.4 trillion won in displays.

For memory, investments were focused on expanding facilities in Pyeongtaek and Xi'an and on process migration to meet future demand growth. For foundries, investments were focused on expanding EUV 5nm processes and other technologies.