Samsung achieves record turnover and invested more than 32 billion euros in chip production

Samsung has achieved record turnover, partly due to the growing demand for smartphones, TVs and chips. The company made a profit of 29.6 billion euros in 2021. The manufacturer also invested heavily in its chip division last year.

Both the annual and quarterly sales of Samsung break previous records of the company. The total annual turnover in 2021 will be more than 207 billion euros, an increase of 24 percent compared to the previous year, the manufacturer reports. The operating profit amounted to almost 57 billion euros for the whole of 2021. The company attributes the growth, among other things, to the increased sales of high-end telephones, including foldables, in addition to televisions and household appliances.

The company’s chip division also posted a 52 percent increase in profits compared to 2020. The industry’s total profit in 2021 was approximately 6.2 billion euros, despite supply chain problems. Samsung writes that the demand for memory and nand products was ‘good’ last year and expects that to continue next year, partly due to the demand for memory for servers. In its outlook for 2022, Samsung also mentions mass production of its first process with gaa transistors.

At the same time, the manufacturer invested approximately 32.4 billion euros in its Foundry division for semiconductor production. The company expanded its production capacity for euv nodes last year, Samsung reported in a conference call with shareholders. Euv machines are used for 15nm dram and Samsung’s sixth-generation v-nand, the company said.

Furthermore, Samsung expects to expand its market share in the mobile market in the coming year, despite the ongoing chip shortages, which the company says will continue to play a role in 2022. The company is talking about new flagship phones, tablets and wearables, to lower-ranking 5G devices. On February 9, the company will hold an Unpacked event, where the upcoming Galaxy S22 series is expected.

According to the manufacturer, Samsung’s screen division did well with mobile panels, but again suffered losses in the production of ‘large panels’. According to the manufacturer, this is due to a decrease in LCDs and the initial costs in the production of qd-oled. Samsung expects growth in 2022, in part as it will start selling foldable panels to more manufacturers. The loss in the production of large panels must be ‘partially mitigated’ with the mass production of qd screens and the introduction of monitors with quantum dot panels.