Samsung Electronics expects component manufacturing business to face difficulties in the second half

Sina Science and technology news Beijing time of July 4, Samsung electronic chip business director Bang said that the semiconductor manufacturing and flat panel display manufacturing business of Samsung Electronics last year's operating profit contribution of 70%, but the two major business in the second half of this year will face difficulties. Samsung Electronics is about to merge semiconductor manufacturing and flat panel display manufacturing to form a new equipment solutions division, and Bang will be the head of the department. "In the past, the semiconductor market was usually weaker in the first half and stronger in the second half," he said. But this year, the second half of the performance is expected to be flat in the first half.　　"Bang's statement has been confirmed by Samsung Electronic spokesman. Bang pointed out that the flat panel display business will face a cyclical decline. In the first quarter of this year, Samsung Electronics has seen its operations run out of money.　　Analysts expect Samsung Electronics to continue to lose money in the second quarter. Samsung Electronics will announce its second-quarter earnings announcement later this week and report its second-quarter full results by the end of July. In the second quarter of last year, Samsung Electronics's operating profit reached a record 50,100 won (about 4.7 billion U.S. dollars).　　Analysts expect the figure to fall to about 4 trillion won this year. For tech companies, the second half of the year is usually better than the first half. Due to the start of the new semester, as well as the end of the Christmas holiday, digital product sales will usually rise in the second half, which will also benefit the component suppliers.　　However, as a result of oversupply, from the second half of last year, the price of the storage chip has been steadily declining.　　The chief financial officer of the company, another major chipmaker, said one months ago that its second-quarter operating profit was likely to be slightly lower than previously expected. Samsung Electronics Most of the flat panel display for liquid crystal display. Since the middle of last year, the performance of the liquid crystal display market has started to slide because of the start-up of the new factory.　　In the coming year, more Chinese LCD plants will be started, and the global economic weakness will affect the market's demand for televisions, which would be detrimental to flat panel manufacturers. Merging chips and flat panel displays will help Samsung Electronics solve structural problems, namely, Samsung electronic components business customers with the company's other parts of the direct competition.　　The products of these departments include mobile phones, televisions, computers and other consumer electronics products. The relationship between Apple and Samsung, the biggest customer in Samsung's electronics division, is growing tense. Apple filed a lawsuit against Samsung Electronics in April this year, saying the company's handsets copied the design of Apple's products. Samsung Electronics then filed counterclaims against Apple in the US and 5 other countries. (D-Gold)