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When we talk about Samsung, the first thing that may come to your mind is flagship smartphones, OLED displays, home appliances and other products.
However, Samsung's recent earnings report data reveals a surprising fact: the memory chip business has become the main source of its profits.
In the first quarter of 2024, Samsung's financial report data can be described as amazing.
Revenue reached 71.9156 trillion won, a year-on-year increase of 12.82%, and the most remarkable thing is that the operating profit soared to 6.606 trillion won, a year-on-year increase of 931.87%!
Such a performance makes people have to sigh that Samsung is indeed a performance explosion.
But it's not Samsung's flagship products that make this feat possible, it's the strong growth of the memory chip business.
In fact, memory chips are not new to Samsung, but their contribution has become more significant in this quarter.
The price increase in the memory chip market has contributed to it.
In the first quarter of 2024, the price of DRAM memory and NAND flash memory increased by more than 40% compared to the same period last year.
As the world's largest memory chip giant, Samsung has a monopoly of more than 40% of the global DRAM+NAND market.
Such a market position has allowed Samsung to profit a lot in the tide of rising memory chip prices, and has become an important driving force for soaring performance.
More strikingly, more than half of the profits are expected to come from the Chinese market.
China has always been one of the world's largest memory chip consumer markets, importing more than 60% of the world's memory chips.
As one of the main suppliers, most of the memory chips produced by Samsung will enter the Chinese market.
It is widely used in various electronic products, thus bringing huge profits to Samsung.
Not only Samsung, but also SK hynix, another South Korean memory chip giant, is also on fire.
According to the data, SK hynix's revenue increased by 144.3% in the first quarter, and its operating profit turned from a loss in the same period last year.
This fully demonstrates the hot situation of the memory chip industry.
The agency expects that the rally in the memory chip market will continue.
This means that the performance of manufacturers such as Samsung and SK hynix is expected to continue to maintain rapid growth.
And China's annual import of more than $100 billion in memory chips will also be an important source of profit for these companies.
However, in the face of such a huge market demand, the domestic memory chip industry is still in its infancy.
We urgently need to accelerate the development of domestic memory chips and enhance market competitiveness to reduce our dependence on imported memory chips.
In turn, the related costs will be reduced and new vitality will be injected into the country's economic development.
Therefore, the domestic memory chip industry needs more support and investment.
Only in this way can we occupy a larger share of the global memory chip market and make greater contributions to the sustainable development of the national economy.
In fact, many domestic chip companies have made great progress in technology research and development and capacity expansion.
For example, Huawei's HiSilicon Semiconductor has outstanding performance in mobile phone chips, server chips and other fields.
In addition, some emerging chip companies are also emerging, actively exploring innovation paths.
In general, the boom in the memory chip business has brought huge economic benefits, but it has also exposed the weak links in the development of the mainland's chip industry.
In the future, we need to continue to increase support for the local chip industry.
Encourage innovation and entrepreneurship and build a stronger chip industry ecological chain to achieve the goal of high-quality economic development of the mainland.
What do you have to say about this? Feel free to leave your thoughts in the comment section!