Today, Samsung announced its earnings for the fourth quarter and fiscal year 2022. Compared to the same time period in 2021, revenues dropped by 69%, which was a big drop. Even though its semiconductor chip and smartphone divisions usually bring in the most money for the company, neither of them did well during the fourth quarter of 2022. Even so, the South Korean company has no plans to cut the amount it spends on investments.
Even though demand for semiconductor chips, smartphones, TVs, and other mobile devices is going down, Samsung said over and over again during its earnings call that it won’t cut the amount of money it invests. It had been said. “On the other hand, we can use this situation to get better prepared for the years to come.” The company has promised to keep investing in infrastructure so that it can meet demand in the medium to long term. The company is planning to put money into building clean rooms in the factories where it makes semiconductor chips.
The South Korean company has said that it will invest about the same amount in 2023 as it did in 2022. A question was asked about the company’s plans to invest, and it had to do with what Micron and SK Hynix, two of its chip competitors, had done in a similar way to deal with an oversupply of and a sharp drop in demand for memory chips. The total amount Samsung plans to spend on research and development for semiconductors is likely to go up starting in 2022. The company said it would put more money into chip research and development “to make our process technology more competitive and to stabilize it as soon as possible.”
For the fourth quarter of 2022, Samsung made KRW 70.46 trillion in sales, about $57.21 billion, and KRW 4.31 trillion in operating profit, about $3.5 billion. Its sales for the whole year of 2022 were KRW 302.23 trillion, which is about $245 billion. Its profit for the whole year was KRW 43.38 trillion, which is about $35.22 billion.