Japans exports of semiconductor key materials to South Korea fell 99percent, Samsungs profit reduced 50percent

category:Finance
 Japans exports of semiconductor key materials to South Korea fell 99percent, Samsungs profit reduced 50percent


Specifically, Samsung Electronics recorded sales of 62 trillion won (376.16 billion yuan) in the third quarter (natural quarter), down 5.29% year-on-year; operating profit of 7.78 trillion won (47202 million yuan), down 55.72% year-on-year; net profit of 6.29 trillion won (38162 million yuan), down 52.17% year-on-year.

In all the major businesses of Samsung in this quarter, the revenue and profit of it mobile communication and panel departments exceeded the same period of last year, and the performance of consumer electronics department was basically the same as last year. Only the most profitable semiconductor sector recorded an operating profit of only 3.05 trillion won (18.479 billion yuan), down 77.66% year on year.

Since July this year, Japan and South Korea have set up export controls over trade disputes. Samsung has become Japans top target.

On July 4, Japan restricted the export of high-purity hydrogen fluoride to South Korea. Japan accounts for about 70% of the global production capacity of this key material for etching wafer semiconductors. At that time, Zheng Jiyong, director of North Korea and South Korea Research Center of Fudan University, thought that this was a precise attack on Samsung. Yonhap suspected that Japans move would force Samsung Semiconductor to shift its supply chain and raise production costs.

As of last month, Japans regulatory ban is still in effect. Just yesterday, Kyodo News Agency reported that Japans exports of hydrogen fluoride semiconductor materials to South Korea fell 99.4% year-on-year in September, according to data from the Ministry of finance. In August, Japans export volume and amount of HFH to South Korea were both zero. Samsung avoided the trade conflict between China, Japan and South Korea in the financial report, but mentioned that since the end of 2018, due to the weakness of the whole industry, the price of memory chips continued to decline, as a reason for the sharp drop in profits of the semiconductor sector. Samsung believes things will get better next year, but still stresses the risks of external environmental turmoil. It should be noted that Samsung Vice President Lee Jae Rong has been involved in lawsuits recently, releasing bad news frequently. On August 29 this year, Li Zairong rejected part of the second instances judgment in the final trial of the bribery case and sent the case back to the court of second instance for retrial. On October 25, Li appeared in court again on the case, which means that the three star Prince will face the possibility of re imprisonment. Source: observer.com Author: Xu qianang editor in charge: Wang Xiaowu Gu NF

As of last month, Japans regulatory ban is still in effect. Just yesterday, Kyodo News Agency reported that Japans exports of hydrogen fluoride semiconductor materials to South Korea fell 99.4% year-on-year in September, according to data from the Ministry of finance. In August, Japans export volume and amount of HFH to South Korea were both zero.

Samsung avoided the trade conflict between China, Japan and South Korea in the financial report, but mentioned that since the end of 2018, due to the weakness of the whole industry, the price of memory chips continued to decline, as a reason for the sharp drop in profits of the semiconductor sector. Samsung believes things will get better next year, but still stresses the risks of external environmental turmoil.

It should be noted that Samsung Vice President Lee Jae Rong has been involved in lawsuits recently, releasing bad news frequently. On August 29 this year, Li Zairong rejected part of the second instances judgment in the final trial of the bribery case and sent the case back to the court of second instance for retrial. On October 25, Li appeared in court again on the case, which means that the three star Prince will face the possibility of re imprisonment.