This file photo taken June 3, 2021, shows the corporate logo of Samsung Group at its office building in Seoul. (Yonhap)
SEOUL, May 18 (Korea Bizwire) — Samsung Electronics Co.’s sales in China halved in the first quarter due to plummeting semiconductor demand and an increase in domestic parts supply.
The world’s largest memory chip and smartphone manufacturer reported a 46.7 percent decrease in China sales for the January-March period compared to last year, amounting to 7.9 trillion won (US$5.91 billion).
This is the first time in three years that Samsung’s sales in China have fallen below 10 trillion won.
While China sales ranked second among Samsung’s foreign sales in the first quarter of last year, this year they dropped to third place after Asia and Africa.
As the United States continues to impose sanctions on China, Samsung faces increasing difficulty in selling semiconductors to the country.
The shrinking IT market in China has also contributed to Samsung’s declining sales performance.
According to market researcher Canalys, smartphone shipments in China last year totaled 287 million units, a 14 percent decrease compared to the previous year.
Lower demand for electronic devices in the country has led to reduced demand for Samsung parts from local manufacturers.
Furthermore, the challenge is compounded by the rising domestic supply of parts.
The Ministry of Science and ICT reported that South Korea’s core scientific technology level in 2020 was 80.1 percent of that of the United States, which is similar to China’s 80 percent.
As China becomes less reliant on Korean companies for parts, Samsung’s sales in China are also declining.
H. M. Kang (hmkang@koreabizwire.com)
