Export exemptions:
Japan shock hit Samsung Electronics
with a 56% decrease in operating income
http://www.chosunonline.com/site/data/html_dir/2019/07/06/2019070680013.html
2019/07/06
Park Seung-chan / Korean Daily News
Voices of concern even further from the July-September period
A warning lamp holds on Samsung's profitability.
Samsung Electronics is expected to have sales of 56 trillion won
(approx. 5.17 trillion yen, approx. $ 47.7 billion )
in the April-June quarter of this year, down 4% from the same period last year,
with an operating profit of 6.5 trillion won
We announced consolidated financial results (preliminary figure)
of 56% rapid decrease (about 600 billion yen, about US $ 5.5 billion ).
Although sales are almost the same,
it means that the profit left at hand decreased to less than half .
This trend has continued since this year.
Operating income for the January-March quarter was 15.60 trillion won
(about 1.44 trillion yen, about $ 1.2 billion ),
and for the fourth quarter of the year, 14.9 trillion won
(about 1.375 trillion yen, US $ 12.7 billion ),
but the operating profit for the January-March quarter is 6.2 trillion won
(approximately 572 billion yen, approximately 500 million dollars ),
and the quarter for the fourth quarter is 6 trillion
It significantly decreased to 100 billion won
(approximately 600 billion yen, approximately 551.3 million US dollars ).
The operating profit margin,
which means operating profit relative to sales,
was 25.4% in the April-June quarter last year ,
but was 11.6% in the April-June quarter.
In other words, if you sell 1000 won
(about 92 yen, about USD 0.85 ),
it would have been 254 won (about 23 yen about 2.16 USD )
last year, but this year 116 won (about 11 yen, about USD 0.099 )
And it means that I can not get it.
■ Uncertainty is added, such as Japan's preferential exemption
... "Growe in the dark" in the second half of this year
Smartphone profitability has been set back due to competition with China.
The company's main product "Galaxy (Galaxy) S10"
launched in the first half of the year is largely not sold as expected
due to the sluggish smartphone market in the world.
In addition, as opposed to 華為技術 (Huawei)
"The number of models for low-priced smartphones
such as Galaxy A and Galaxy M has significantly increased in order
to maintain the number one position in the world,
which has also led to a deterioration in profitability.
Folding smartphone that was scheduled to be released in April
"Galaxy Fold"
There is a defect in the product and it has been delayed
for more than two months .
The fact that the launch date of Galaxy Fold,
which will not be released again in the second half of the main product
"Galaxy Note 10" scheduled to be released in August,
is almost the same is also an unknown effect on how it affects.
In the home appliances business,
sales of large-screen TVs using quantum dot LED technology
(QLED) and air conditioners that are peaking are strong,
with a surplus of around 700 billion won
(approximately ¥ 64.6 billion, approximately ¥ 600 million ).
It is thought that it came out.
The Display Division is estimated to be plus or minus zero, or a little red,
excluding Apple's compensation.
In the securities industry,
Samsung Electronics is expected to achieve almost
the same result as 6 trillion won in the second half of this year.
The key is the impact
of Japan's preferential exemption
on the export of major semiconductor materials.
The responses of securities officials are mixed.
Mr. Kim Soon,
an analyst with Merrits comprehensive financial securities
"With memory prices falling,
the uncertainty of material supply interruption in Japan added.
It is necessary for governments
and companies to take immediate action before the situation goes on.
Said.
Mr. Kim Yan-jae, an analyst with KTB Investment Securities
"It will be an opportunity to strengthen the bargaining power
of semiconductor prices on the basis that there is a concern
that production will be adversely affected."
He see.
Samsung Electronics operating profit trend , units, trillion won
Gray, total operating income
Light blue, semiconductor operating profit total
DRAM semiconductor price , unit, dollar
DDR4, 8 Gb fixed trading price basis
Material exchange
Semiconductor factory may stop
at the end of this month
The CEO of a domestic semiconductor maker,
such as Samsung Electronics SK Hynix, said,
"If Japan can not eliminate export exemptions ,
plant operation may be suspended from the end of this month. "
I communicated the concerns to the government.
" We are taking economic retaliation measures "
The Korean government's policy on hard-line
"When the war is expanded to the Korean-Japanese all-out war,
the damage to our company becomes too great. "
And revealed the opposite intention .
According to the government on 5th, Hong Namgi ,
Deputy Prime Minister and Minister of Planning and Finance,
Kim Sang Jo, President of the Policy Office of the Presidential Office
such as the President of the Executive Office Kim Ginam, Liu
He met with the management team of semiconductor manufacturers
such as Samsung Electronics Vice Chairman and heard such an opinion.
The government official
"The semiconductor manufacturer CEO said,
" The stock of some materials such as etching gas
(high purity hydrogen fluoride) is only 2 to 4 weeks worth,
and the factory may be shut down at the end of this month
as soon as possible "
He was concerned about
Said.
Even if a single process stop occurs in hundreds of processes,
the semiconductor line must be shut down .
It has been found that the government will
also focus on oppressing Japan through international cooperation
rather than "joint revenge."
Exports to Japan along with the US (Google, Apple, Amazon)
China (Shaomi, Opotiki, Vivo) etc. where their companies are also hit hard
if Korea's semiconductor production is disrupted
It is a strategy to jointly request preferential treatment cancellation.
Officials at the Blue-Wing Table
"The top of the policy is not to damage Japan as much as possible
but to reduce the damage to our company"
Stressed.
Professor Park Han Jeong Han
" All existing customer companies such as Apple and Qualcomm
will move to competitors such as Taiwan TSMC
if Samsung Electronics plant is shut down "
"Government should work more positively on solving past problems with Japan"
Pointed out.
Loss of only one hour at the factory:
"Successful by major semiconductor competitors "
Cheong Wa Dae and the government are turning
the domestic semiconductor and display industries
I look with amazed eyes.
On the exclusion of preferential treatment for export of semiconductors
and display materials of the Japanese government starting
from the last 4 days From the mouth of Korean government officials
" I clearly violated international law "
" We will take retaliation measures "
It is because the hardline statements are overflowing .
It was found that domestic semiconductor makers
such as Samsung Electronics and SK Hynix
were prepared for crisis situations in each scenario
such as subtraction and suspension of plant operation
with the possibility that Korea-Japan conflict might be prolonged.
Andong Gun,
Professor of International Graduate School of Seoul National University,
"If the two sides of the government replace
(river of river) and the front spreads,
Korean companies will see more damage ."
"War expansion must be self-controlled"
He advised.
Semiconductor industry "super emergency"
to exclude Japan export preferential treatment
According to the industry on the 5th,
Japan's export preferential exemption measures started from 4th to photoresist
(photosensitive solution), etching gas (high purity hydrogen fluoride),
three semiconductors such as fluorine polyimide, display,
core material Japan Domestic customs clearance has been delayed
for two days .
The industry estimates
that customs clearance procedures will take at least a month
or more to permit these goods,
which have been imported and imported on a three-year basis,
on a case-by-case basis.
One party in the domestic semiconductor industry is
"We manage materials subject to export restrictions on a daily basis."
"We are trying to diversify our supply sources,
but it is difficult to avoid supply shortages in the short run."
He confessed.
It has been found that the etching gases used to remove impurities
in a wide range of semiconductor and display processes have only
a few weeks worth of inventory for some companies.
It is highly toxic and may be denatured, making it difficult
to deposit and store a large number of stocks .
The photoresist used in the exposure process
for printing the circuit of the semiconductor wafer has also been reported
to have a specific inventory of only a few months .
Display manufacturers such as LG Display
and Samsung Display have also taken "urgent"
to secure etching gas and fluorine polyimide.
An industry official
" Material filled with know-how accumulated
by Japanese companies for over 100 years "
"It may take a considerable amount of time to substitute,
or it may be difficult to substitute. "
He confessed.
Executives in major domestic semiconductor industries
such as Samsung Electronics and SK Hynix have shown
that such crisis conditions are being communicated
to the Korean government through various routes.
Some high-level officials of government ministries
"I have heard that some semiconductor lines may have
to shut down as early as this month ."
And
An official at THE REPUBLIC OF KOREA CHEONG WA DAE
also said, "Now it's an emergency station,"
and "It's not time to care about pointing out that "
an ally of a company "
Said.
The semiconductor line operation is interrupted
A semiconductor factory
that operates 24 hours will cause huge damage if it is stopped once .
Samsung Electronics reported a 40 billion to 50 billion won
( approximately 3.7 billion yen, approximately $ 34.40 million
to approximately 4.6 billion yen, approximately 4.6 billion yen )
united by a 30-minute blackout accident that occurred
at the 平沢(pyeongtaeg) semiconductor factory last March.
It suffered a loss.
Samsung explained that the emergency generator was activated
at the same time as the power failure,
and the power of only some of the facilities could not be cut,
preventing more serious damage.
There are two such large-scale semiconductor lines
at Samsung Electronics and SK Hynix, respectively.
In the domestic semiconductor industry,
there is concern that production of main semiconductor products
such as D-RAM, NAND-type flash and mobile application processor
(AP) will be completely hampered
if Japan's export preferential treatment is prolonged .
Domestic companies are concerned about the possibility
that the conflict between South Korea and Japan may cause
the war to be extended to a full war in response
to the Korean government's hardships .
One party in the display industry is
" We asked for ideas for retaliatory measures
that government ministries such as the Ministry of Industry,
Trade and Resources can hit the Japanese government. "
" We are anxious about the management team to see
if the front line widens . "
He told me.
Experts say that if the trade war between the two countries goes
into full swing, the impact on Korean companies will increase .
Japan's domestic market is larger than Korea,
and Japan's exports have many non-substitutable products .
Chief Executive Officer (CEO) of the four major group companies in Japan
" Even if we regulate only Nidec's industrial precision motor export
with sales of around 9 trillion won
( about 830.7 billion yen, about 7. 587 million dollars ) ,
the operation of many factories in Korea will be interrupted. "
"A battle that can not be won at all "
Said.
