By Hyunjoo Jin and Joyce Lee
SEOUL (Reuters) -Samsung Electronics launched on Wednesday a fourth-quarter working revenue estimate that missed analyst estimates by a big margin, because it lagged behind rival SK Hynix in supplying high-end chips to Nvidia (NASDAQ:).
The world’s largest reminiscence chip, smartphone and TV maker estimated an working revenue of 6.5 trillion received ($4.47 billion) for the three months ended Dec. 31, versus a 7.7 trillion received LSEG SmartEstimate.
The estimated consequence was 131% greater than the identical interval a yr earlier, however down 29% from the third quarter. Samsung (KS:) shares had been down 1% in early buying and selling, whereas the broader South Korean market was up 0.1%.
Samsung stated in an announcement that amid slowing demand for typical reminiscence chips utilized in PCs and cell phones, its reminiscence chip earnings for the fourth-quarter had been dented by rising analysis and growth prices and investments in manufacturing capability for superior chip processes.
It additionally stated earnings fell in its non-memory chip enterprise, which spans contract chip manufacturing and logic chip design, on account of decrease utilisation charges at its factories and better analysis and growth prices.
Earnings for its gadgets enterprise, which incorporates cell phones, TVs and family home equipment, fell because of the fading impact of gross sales of recent cell phone fashions and rising competitors, Samsung stated.
In October, the South Korean firm made a uncommon apology for its disappointing third-quarter efficiency and stated it was making progress in supplying synthetic intelligence chips to Nvidia.
But it surely has not supplied any replace since, and delays to offering Nvidia with high-end chips have continued to weigh on its earnings, analysts stated.
Nvidia CEO Jensen Huang advised reporters in Las Vegas on Tuesday that Samsung has to “engineer a brand new design” to produce high-bandwidth reminiscence (HBM) chips to Nvidia, including that “they’ll do it and they’re working very quick,” Korea JoongAng Each day reported.
Samsung’s assertion on Wednesday didn’t embrace any replace on its progress in supplying HBM to Nvidia.
($1 = 1,454.6000 received)
