Samsung, SK Hynix's sales in China fell by 4 trillion won in Q3
As the confrontation between China and the United States intensified, according to statistics, Samsung Electronics and SK Hynix’s revenue in China shrank by more than 4 trillion won in the third quarter, while the revenue in the United States increased by nearly 3 trillion won.
Korean media BusinessKorea reported yesterday (23) that Samsung and SK Hynix released their financial reports this week, showing that the two companies accounted for 9.6% and 25.1% of China's Q3 revenue, 3.8 percentage points and 5.4 percentage points lower than Q2. Samsung’s Q3 revenue in China shrank from 10.3511 trillion won in Q2 to 7.4 trillion won, and SK Hynix also shrank from 4.2 trillion won to 2.8 trillion won. The two companies’ Q3 revenue in China decreased by 4.4 trillion won. .
Notably, both businesses saw a significant increase in U.S. revenue. Samsung and SK Hynix's Q3 U.S. revenue increased by 2.1 trillion won and 920.1 billion won quarterly, respectively. Among them, SK Hynix's U.S. revenue accounted for 56.2% of revenue, up from 51.3% in Q2.
The report pointed out that Samsung and SK Hynix have recently shifted their operational focus from China to the United States, hoping to reduce the risk of confrontation between China and the United States in advance. The U.S. government imposed a ban on the export of advanced process chips/equipment to China. Samsung and SK Hynix’s memory chip manufacturers in China have been exempted for one year, but according to the analysis of the Nikkei Asian Review, this is only for Korean companies to find out. The duration of Plan B.
A person familiar with the matter said that the two manufacturers have begun to assess the trade risks faced by Chinese factories and plan for different scenarios.
Kim Yang-paeng, a researcher at the Korea Institute of Industrial Economics and Trade, said that the message sent by the United States to Samsung and SK Hynix is that they must withdraw from China and set up factories in the United States. Samsung and SK Hynix are almost powerless to resist.
