Samsung Electronics and SK Hynix Suffer Profit Decline in China

Lockdown in china resulted Samsung Electronics and SK Hynix’s profit declines

Samsung South Korean Venture and SK Hynix (the world’s second-largest memory chipmakers after Samsung Electronics). Both subsidiaries in China declined in the first of two halves of the play of the year. Analysts encounter the reason for the declination is lockdowns of cities to prevent the spread of COVID-19.

According to Samsung Electronics’ semi-annual report released on August 18. Samsung China Semiconductor (SCS) in Xian posted 321.64 billion won in net income in the first half of this year. The figure was a drop of 58.1 percent from 766.651 billion won in the same period of 2021.

SK Hynix

In difference, its sales increased by 54.8 percent to 4.86 trillion won during the same period. As a result, its net return on sales sank to 6.6 percent from 24.4 percent in the previous year.

SK Hynix’s Chinese subsidiary also facing some or other forms of downfall in profitmaking. SK Hynix Semiconductor (China) Ltd., which produces DRAMs, logged a net loss of 276.59 billion won in the first half of this year. That it is found the calculated loss is bigger than the loss compared in the first half of last year. Its sales corporation in Wuxi racked up 6,514.2 billion won the sales, a steep increase in numerous ways from the previous year. But its net return on sales reached only 0.4 percent.

Industry insiders believe that the two Korean chipmakers were pretentious by lockdowns in China. This is how the condition affected One largest chip maker company and another second largest chip maker company. You can dump them there in the comment box you also have some suggestions. For more news updates stay in touch.

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