Monday, 10 December, 2018

Samsung Enters Mass Production of Crypto Mining Hardware

Samsung Galaxy S9 and S9 Plus featured Samsung Enters Mass Production of Crypto Mining Hardware
Nellie Chapman | 31 January, 2018, 12:55

Samsung recorded an overall revenue of $61.5 billion (65.98 trillion won) with an operating profit of a staggering $14.13 billion (15.15 trillion won).

Samsung's display business, which supplies Apple with OLED screens, reported a 1.4 trillion won profit in the fourth quarter, up 5% from the same period a year ago.

Samsung Electronics' net profit for the fourth quarter rose to RM44 billion, or a 73% jump, despite a humiliating recall of the Galaxy Note 7 device and the jailing of its vice-chairman Lee Jae-Yong on corruption charges.

Samsung Electronics Co. delivered its third consecutive quarter of record results, owing to robust demand for its memory chips, though operating profit at its smartphone unit fell.

The maker of the premium Galaxy S8 smartphone and Note 8 phablets spent about 9.2 trillion won past year to repurchase and cancel 3.3 million common shares and 826,000 preferred shares as part of efforts to boost its overall corporate value.

Chipmakers like Samsung, South Korean rival SK Hynix and Intel have been riding a boom in sales of semiconductors as the world demands ever greater processing capacity to power data centres, high-tech smartphones and the blockchain ledgers behind crypto-currencies.

Samsung Electronics announced a 50:1 stock split on January 31, prompting urgent newsflashes in many South Korean media. Samsung blamed higher marketing costs for the decline.

While the profit was expected, the firm's shares surged more than 8% after it unveiled the massive stock split saying it wanted to be "provide dividends to a wider range of investors".

But Samsung shares have recovered about 3 per cent over two weeks, helped partly by a rosy market outlook from SK Hynix, world's number 2 memory chip maker.

As part of a previously agreed shareholder return policy, Samsung also announced a year-end dividend of 21,500 won per common share. One of Intel's biggest growth areas previous year was memory chips, but it has a long way to go to catch up with Samsung. As for DRAM, the company expects solid demand growth due to new datacenter builds and will increase product competitiveness by expanding 10nm-class process migration.

The Korean giant placed some of the blame for its declining profits on reduced demand for its low-end smartphone models.

"In the first quarter, the company expects the mobile business to improve its earnings, led by an increase in sales of flagship products with the launch of Galaxy S9", Samsung said in a statement. At the same time, Samsung announced it was "accelerating its plans for much faster introductions of next-generation DRAM chips and systems, including DDR5, HBM3, LPDDR5 and GDDR6, for use in enterprise servers, mobile devices, supercomputers, HPC systems and high-speed graphics cards". The firm added that a one-off incentive paid to employees in the semiconductor business also had an impact on earnings.