Samsung Electronics recorded its highest-ever quarterly revenue in the third quarter of 2021, driven by improved performance in its semiconductor and wireless businesses, despite a deficit in its display business.

Samsung Electronics disclosed its business results for the third quarter of 2021 on the 28th. According to the announcement, revenue reached 73.9792 trillion won, up 10.5% from the same period last year, and operating profit reached 15.8175 trillion won, an increase of 28% year-on-year. Net profit recorded 12.2933 trillion won, up 31.3% from the same period last year.

In the third quarter, sales in all core businesses increased due to strong sales of smartphones, including foldable phones, increased memory sales, and increased OLED sales, recording the highest sales ever. This marks the third consecutive quarter of the year to break the record for the highest quarterly sales, and on an annual basis, it is projected to record the highest sales ever, significantly surpassing the previous record set in 2018.

Operating profit reached its second-highest level in history, driven by significant improvements in the components business—including the continued favorable memory market and expanded sales in foundry and displays—and a robust performance in the set business.

Both operating profit and operating profit margin improved significantly compared to the same period last year, driven by the product business.

The semiconductor division recorded sales of 26.41 trillion won and an operating profit of 10.06 trillion won in the third quarter.

In the memory sector, DRAM achieved its highest quarterly shipment volume and the second-highest revenue in history by actively responding to demand centered on server applications, and performance improved significantly through cost reductions achieved by expanding sales of 15nm DRAM and 128-layer V-NAND. The foundry business also saw improved performance by expanding product supply to global customers.

Display recorded sales of 8.86 trillion won and an operating profit of 1.49 trillion won in the third quarter.

While performance in the small and medium-sized segment increased due to the launch of new products by major smartphone clients, the large segment continued to incur losses due to factors such as falling LCD panel prices.

The IM (IT & Mobile Communications) division recorded sales of 28.42 trillion won and an operating profit of 3.36 trillion won.

Wireless performance improved compared to the previous quarter due to expanded sales of new foldable phones and mid-to-low-end smartphones, as well as the growth of the Galaxy Device Eco product line. Network has expanded its overseas business in North America and Japan while continuously responding to the expansion of the domestic 5G mobile network.

The CE (Consumer Electronics) division recorded sales of 14.1 trillion won and an operating profit of 760 billion won in the third quarter.

While the video display and home appliance divisions are actively expanding their premium TV and Bespoke lineups, profitability has declined due to rising costs, including raw materials and logistics expenses.

Regarding exchange rate impact, major currencies generally strengthened against the won, and the dollar showed significant strength, resulting in a positive effect of approximately 800 billion won on operating profit compared to the previous quarter, centered on the parts business.

The fourth quarter is expected to be affected by demand from some customers due to component shortages. Samsung Electronics plans to actively respond to demand for memory and system semiconductors in the components business, and focus on maintaining solid profitability in the set business by strengthening its premium product leadership and lineup.

The demand risk for memory is expected to increase due to the prolonged nature of component supply issues compared to initial forecasts. However, server demand is expected to remain robust due to increased investment by major IT companies, and we plan to actively respond to this.

System LSI is expected to expand the supply of SoCs (System on Chip) and related products for new mobile products in 2022, and foundry is expected to see a significant improvement in performance by actively responding to demand for advanced processes.

For small and medium-sized displays, solid performance is expected due to sustained smartphone demand and expanded sales in new applications, while the company plans to begin mass production of QD displays for large displays.

Wireless plans to secure solid profitability by actively responding to replacement demand through the expansion of sales of mid-to-low-priced 5G smartphones, while continuing to expand sales of premium products such as foldable phones, and by expanding sales of tablet and wearable product lines.

CE plans to expand sales centered on premium products through year-end peak season promotions.

Capital investment in the third quarter is 10.2 trillion won, with semiconductors at 9.1 trillion won and displays at 7 trillion won by business sector.

Cumulatively for the third quarter, 33.5 trillion won was executed, consisting of 30 trillion won for semiconductors and 2.1 trillion won for displays.