SEOUL, Aug. 1 (Korea Bizwire) — Samsung Electronics, after announcing disappointing quarterly financial results recently due to the poor performance of its smartphone division, is trying to get out of a funk by investing intensively in B2B businesses focusing on semiconductors and displays.
The company said this on July 31 in a conference call releasing finalized second-quarter data, adding, “This year’s investment will be 24 trillion won, almost the same level as last year’s. Of this, we will invest 14.4 trillion won in semiconductors and about 5.0 trillion won display panels. We will improve our business capabilities by strengthening technological leadership centered on parts and components.”
In the semiconductor areas, the company will focus more on state-of-the-art memory process, V-NAND flash memory infrastructure, and the latest system LSI process. As for the display areas, it will focus on expanding and improving the existing OLED lines.
In addition, Samsung will keep its product leadership by mass-producing fast-mover items such as the 14-nm FinFET, mobile application processor, and 3D NAND flash memories.
Baik Ji-Ho, Samsung executive in charge of memory business, said, “The mass-production of 14-nm chips will be operational by the year’s end, with customers lining up to get delivery. We expect sales revenue to come out of Exynos application processor by the first half of next year, followed by a stable stream of income from the foundry business by the second half.”
As for the issue of increasing dividend payout, however, the company was reluctant to be forthcoming. Lee Myung-jin, the executive responsible for investors relation, said, “Given our commitment to new technology projects such as wearable computing and 14-nm process chips, it is difficult to make decisions on raising shareholder value. We believe our shareholders will benefit from our company’s good performance in the long run and we hope you to be a little more patient.”
By Sean Chung (firstname.lastname@example.org)