Some items will no longer be fed before the end of the year! Samsung's destocking faces a serious crisis

Samsung's destocking is not as good as expected. The supply chain has recently received notices from Samsung. The original schedule of suspending shipments to the end of July has been postponed to at least the end of August. Some items will not be restocked before the end of the year. Light, Shuanghong, Aegis and other Samsung supply chains pull alerts.

Samsung's extension of the suspension of the purchase of goods means that the overall high inventory level and the previous repeated orders are more serious than expected, and the sales of mid-end mobile phones are especially affected by inflation. The industry does not shy away from saying, "Samsung's extension of the suspension of delivery time is worse than the order cut."

Samsung is the world's two major consumer electronics giants in smartphones and TVs. The supply chain revealed that from the perspective of mobile phones alone, the inventory of finished products and semi-finished products in the hands of channel suppliers and suppliers can almost be sold to the first quarter of next year. In other words, Samsung can stop pulling goods from the supply chain before the end of this year. Commodity inventory" is its top priority.

The industry originally believed that if Samsung only suspends the purchase of goods in July in the traditional peak season of the third quarter, the supply chain can still respond by "plugging goods to channel dealers or other channels". There may be no place to pack the components, "the disaster will be serious", and "the traditional peak season in the second half of the year may be reimbursed."

The supply chain revealed that inflation caused the general public to buy gas and shrink their hands, which hit the sales of mid-range mobile phones, which was the trigger for Samsung to extend the suspension of buying goods. Samsung's mobile phone components mostly use its own components, but still rely on Taiwanese manufacturers such as MediaTek, Shuanghong, and Largan to supply mobile phone chips, cooling modules, lenses and other items.

The Korean media previously named that 14 of the 64 smartphones and tablets launched by Samsung this year will use MediaTek chips. According to market estimates, they are mainly used in Samsung's A-series and M-series mid-range models, which are currently the most severely hit. The new models, coupled with the continuous rumors of mainland mobile phone brands cutting orders, are not conducive to MediaTek's shipments in the second half of the year.

In response to whether customer orders and market conditions have changed, MediaTek responded that it does not comment on the situation of a single customer. The company's annual growth target has not changed at present, and a legal meeting will be held in the future, and there will be more detailed explanations at that time.

Samsung smartphone lenses use Largan products. Although Largan's revenue in June was bright, the proportion of high-end 20-megapixel shipments fell below the 10% mark in the monthly shipment structure for more than a year. A low point may be detrimental to the product mix and affect the gross profit margin performance. Some lens-related manufacturers revealed privately that Samsung told some items that they would not even receive materials by the end of the year.

Largan will hold a legal meeting on Thursday (14th), with Samsung's notice to extend the suspension of the time of delivery, the legal person will pay attention to the traditional peak season shipments in the second half of the year.

Shuanghong does not comment on the trend of orders from a single customer. Chairman Lin Yushen said frankly that this year's consumer notebook and mobile phone cooling business is indeed more challenging due to the impact of environmental factors.

Samsung fingerprint recognition IC supplier Aegis said that it respects customers' inventory adjustment actions. Judging from the operating performance of SHIELD this year, it did encounter headwinds. The revenue in the first half of the year was NT$1.65 billion, a decrease of nearly 10% year-on-year.