Samsung Securities recently released a report saying that with DRAM sales declining for two consecutive quarters, Samsung Electronics must diversify its product portfolio in the foundry field, and it is recommended to spin off the foundry division and list it in the United States.
"The macro economy has deteriorated further, and Samsung Electronics' DRAM capacity utilization rate is declining, which means that consumers' disposable income is shrinking and their inventory burden is increasing," the brokerage added. "In addition, global logistics issues may lead to order cancellations. , sales and capacity utilization fell further."
According to data from market research institutes, Samsung Electronics' DRAM sales in the first quarter of this year were $10.343 billion, a decrease of $9 million from the previous quarter. Sales fell for two consecutive quarters after reaching $11.53 billion in the third quarter of 2021. This is related to the continued decline in global DRAM prices, which fell by 9.5% in October last year and 8.1% in January this year.
Samsung Securities also pointed out that Samsung Electronics needs to consider building foundries in the United States and Europe. "Currently, 38% and 37% of Samsung Electronics' foundry division's sales come from Qualcomm and Samsung LSI, respectively," the agency said. "In terms of foundry , the connection with customers is very important, and more localized office is necessary.”
TSMC employs around 60,000 people, while Samsung Electronics' foundry division has around 20,000 people, according to Samsung Securities. In addition, Samsung Electronics and TSMC have about 3,000 and 10,000 R&D personnel, respectively. "Samsung Electronics also needs to consider spinning off its foundry division and listing it in the U.S."
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