Recently, Samsung released its financial report for the first quarter of 2024, which showed that the revenue in the first quarter was 71.9156 trillion won, a year-on-year increase of 12.82%, and the operating profit reached 6.606 trillion won (about 34.615 billion yuan), a year-on-year increase of 931.87%!
Obviously, this quarter, Samsung's performance exploded, why it performed so well, Samsung explained that it was the strong sales of the flagship smartphone Galaxy S24, as well as the strong growth of the memory chip business.
But in fact, what really plays a decisive role is the growth of memory chips, after all, Samsung's mobile phones, OLED, home appliances, chip business, etc., don't look very powerful, in fact, the profits are really not high, and the profits are mainly contributed by memory chips.
Because in the first quarter of 2024, the price of memory chips, including DRAM memory and NAND flash memory, may be more than 40% higher than in the first quarter of last year.
Samsung, as the world's largest memory chip giant, has won 40%+ of the global DRAM+NAND market, and when the price rises by 40%, Samsung has of course made a lot of money.
Behind this growth of 931.87% and a net profit of 34.6 billion yuan, it is expected that half of the money made by Samsung will come from China.
The reason is that China purchased a large number of Samsung's memory chips in the first quarter, because China has always imported more than 60% of the world's memory chips.
Samsung accounts for more than 40% of the global share, which means that at least half of the memory chips produced by Samsung will be exported to the Chinese market, some will be consumed by the Chinese market, and some will be manufactured into various digital electronic products and then sold to the world.
In fact, not only Samsung's performance exploded, but also the performance of SK hynix, another memory chip giant in South Korea, also exploded in the first quarter, data shows that SK hynix's revenue in the first quarter was 12.4296 trillion won, a year-on-year increase of 144.3%. The operating profit was 2.886 trillion won (15,180.36 million yuan), from a loss of 3.4023 trillion won in the same period last year.
According to the agency's predictions, memory chips will continue to rise next, so the performance of Samsung and SK hynix will continue to soar, and China's annual import of memory chips exceeds 100 billion US dollars, once the price of memory chips rises by 50%, we will have to pay an additional 50 billion US dollars, of which more than 70% of this money has been earned by Samsung and SK hynix......
I hope that domestic memory chips will come on, grab a little more share, let us import a little less, then there will be less imports.