Despite Samsung Electronics ushering in an era of 300 trillion won in sales in 2022, its operating profit fell 16% year-on-year due to memory inventory adjustments and price declines amid the global market downturn.

Samsung Electronics announced its fourth-quarter 2022 earnings results on the 31st. According to the results, consolidated revenue for the fourth quarter of 2022 reached KRW 70.4646 trillion, a 7.97% decrease year-on-year. Operating profit reached KRW 4.3061 trillion, a 68.95% decrease year-on-year. Net income for the period reached KRW 23.8415 trillion, a 119.98% increase year-on-year.

The 2022 annual business performance, on a consolidated basis, recorded sales of KRW 302.2314 trillion, an 8.09% increase year-on-year, while operating profit decreased by 15.99% year-on-year to KRW 43.3766 trillion. Net income increased by 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 valuation losses.

Meanwhile, the foundry achieved its highest quarterly and annual revenues by expanding sales to key customers, and increased profits year-over-year by expanding production capacity centered on advanced processes and diversifying customer bases.

Display business saw a decline in performance compared to the previous quarter due to a decline in demand for smartphones in small and medium-sized businesses, but achieved solid results driven by sales of flagship products. Large-sized companies saw their losses narrow as sales of QD-OLED TVs increased 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 its domestic 5G network and overseas business expansion to North America and other regions.

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

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

Harman achieved its best quarter ever for two consecutive quarters, driven by increased sales in its automotive business and robust consumer audio sales.

Facility investment amounted to KRW 53.1 trillion annually, with KRW 47.9 trillion in DS and KRW 2.5 trillion in SDC.

In the case of memory, investments were made primarily to expand the application of advanced technologies such as EUV to strengthen future competitiveness and to secure next-generation research and development infrastructure, including infrastructure for Pyeongtaek 3 and 4.

The foundry focused its investments 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 its small and medium-sized flexible production capacity and investing in infrastructure.

The first quarter is expected to see continued sluggish global IT demand and a weak semiconductor market, but demand is expected to begin to recover in the second half of the year after a short-term market downturn.

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