Samsung's Q4 2021 earnings say NAND profits up Q-on-Q even in the downtime of supply chain

Samsung wants more profit even though the chip shortage is happening right now. The lockdowns are primary concerns for supply as roads are constantly blockaded, less workforce in factories that produce silicon chips. Even though the revenue margin for 2021 Q4 earnings was as expected. The company managed to keep product pricing for its NAND chips for memory modules.

Even though the revenue margin was as par, the supply chain was in a failed state due to its lobbying of maintaining its guidance. The guidance was issued on 9th January, where a Reuters survey talked about $15 billion profit in Q4. Most of which was made up with DRAM prices. DRAM's on Samsung's side uses NAND chip which was quite troublesome to get due to the coronavirus lockdowns.

The supply shortage was noticed during the last three or four months of 2021, where demand rose high. The demand shortage did not break Samsung's motive to supply quality DRAM and NAND chips. According to the South Korean mega-corporation, the Q4 revenue was $64.8 billion (₩76.57 trillion), almost 24 per cent up year-on-year. The operating profit was $11.6 billion (₩13.87 trillion), nearly five per cent up from last year.

On the 2021 Q4 results, demand for Memory remained solid. Server-side products were great, but a slight decline in Q-Q dropped to one-off special incentives and global supply chain issues. DRAM received enhanced competitiveness by actively addressing the server. They also coped with an increasing portion of 15-nano to serve graphic demand.

On the other hand, the semiconductor industry is another most prominent side for the South Korean giant. Year-on-year revenue was $21.6 billion (₩26.01 trillion) as the turnover was 43 per cent up. The memory division grew by 44 per cent year-on-year to $16.16 billion (₩19.45 trillion) with a 7 per cent sequential drop.

S.LSI reached an all-time high revenue with increased demand for SoCs and DDIs. But the price saw a slight fall due to special bonuses. On the Foundry side, it set up a new record with the supply of critical products such as principal applicants.

The company's Q1 2022 outlook is uncertain, but potentially improvements are set to build demand. Server PC and mobile products are spectating limiting effects of slow reasonability. Products for PC and smartphones need constant supply because of the contract on the manufacturing plants.

That was for the semiconductor business unit. Suppose we look through the DP section, then the improved result on Q-Q continuation of solid demand. Costumers looking for new smartphones increased sales in the sector, bringing new applicants, including gaming and notebook PCs.

Samsung spokesman said 'there were some downstream production disruptions due to the global supply chain issue, which impacted memory.' LCD ASP initial cost increased due to the mass production of QD displays and TVs are on manufacturing plants.

The mobile sector will see improved Y-Y thanks to the increased demand of key customers. Despite weak seasonality for smartphones, Foldable displays are gaining attention, and Samsung is way ahead of the curve. The competition is trying to cope with Samsung's innovation in folding display production, but Samsung seems a decade early in terms of the technology they currently have at disposal.

Currently, mobile space is adaption increased usage of 5G and OLED. The foldable market amid smartphone demand will bring balanced growth by diversifying applicants such as IT and automotive. For large scale production, QD display and close LCD liens are on par.

Samsung's senior VP of Investor Relations said they are bringing significant investments in Memory increased year-on-year as they are at the lead of an inflation point in technology. Investment and focus on technology leadership maintained an efficient level in the market, and mid to long term perspectives are great for this business category.