Profit plunge 85%! The performance declines 22%! Two chip giants are a bit ＂cold＂
Storage chip giants Samsung and MCU giant Microchip have recently announced the latest financial report guidelines, but compared with market expectations, the data given by the two giants is unsatisfactory.Microchip: Last quarter revenue declined about 22%
According to Microchip estimates, the revenue of the third fiscal quarter (as of December 31, 2023) will decline by about 22%, exceeding the company's own 15-20%decline on November 2, which is also predicted than Wall Street forecast. 17% fell poorly. Microchip's revenue in the second quarter increased by 8.7%(1.5%off the quarter) to US $ 2.254 billion.
Ganesh Moorthy, CEO of Microchip, said: The weak economic environment allows customers and dealers to demand Microchip to reduce shipments to reduce inventory risk. Many customers have also extended the suspension time at the end of the quarter. Affected by these related factors, the estimated backlog order of the estimated shipments during the wealth test on November 2, 2023 did not transport them to customers before the end of December 2023.
Microchip's basic chip can be applied to almost all industries, with more than 125,000 customers in markets such as automobiles, industry, consumption, communications, and computers.
Prior to Microchip, MOBILEYE, a car chip manufacturer, also called the first quarter revenue of 50%, which was far less than the growth of Wall Street. Mobileye said at the time that the problem was that the Eyeq computer chip sold to car manufacturers continued to increase in inventory. The inventory continued to increase Essence.
Samsung: Last year's operating profit plummeted 85%
According to the latest data from Samsung Electronics, the operating profit in the fourth quarter decreased by 35%year -on -year to 2.8 trillion won ($ 2.1 billion), with an average expected of 3.7 trillion won. The sales were 67 trillion won, which was lower than the expected 7.031 trillion won. In 2023, the business profit was 6.54 trillion won, a year -on -year decrease of 84.92%.
According to the analysis, Samsung's non -storage chips, television and home appliances business may be lower than expected to be the main reason for Samsung's overall revenue as much as market expectations; in addition, the shipment of Samsung's two foldable flagship models may be compared The decrease of about 1 million units also led to a decrease in profitability.
Although the operating profit is weaker than expected, the decline in this quarter has shrunk to Samsung's narrowest time since the 5th quarter. Samsung's operating profit in the second and third quarters of Samsung plummeted 95%and 77.6%year -on -year, respectively.
Samsung predicts in October that it is pushed by an artificial intelligence boom, and the memory market that is in a downturn is expected to gradually rebound in 2024. At that time, Samsung's senior management stated that memory prices should be out of the trough around the second half of 2023.
However, this latest financial report indicates that the situation may change.
Count Kang, director of the Counterpoint Technology Market Research, said: "I think this indicates that the rebound speed is slower than all of us imagined ... the price is not so fast, and the demand in some industries is not so strong."
In comparison, in December last year, Samsung's main competitor in the semiconductor field Micron Technology announced the expected revenue prospects, indicating that the demand for data centers recovered, which made up the influence of the cold demand of the computer and mobile device.
