Samsung's Upgraded Exynos Puts Non-Memory Unit on Track for First Profit in 3 Years
Samsung Electronics' (005930.KS) non-memory division is expected to return to profit in Q3 2023, the first in 3 years. The Exynos 2700 AP outperformed Qualcomm's Snapdragon 8 Elite Gen 6 in tests. Increased use of Exynos chips in Galaxy smartphones could lower costs and boost foundry division's internal orders. Samsung has secured orders from Tesla, Apple, and Broadcom, and raised foundry service prices by up to 15%.
How this was made
The 30-second read
Why it matters
The profit forecast suggests a turnaround that could improve Samsung's valuation and influence supply‑chain dynamics.
Market read
First profit forecast for Samsung's non‑memory unit may drive stock movement and affect semiconductor peers.
What to watch
Higher foundry pricing could offset cost savings from internal chip use.
Background
Samsung has been absorbing losses in its non‑memory unit while investing in in‑house chip design and advanced foundry nodes.
Ticker impact
Samsung Electronics' non-memory division is forecast to post a Q3 profit of 151 billion won, its first profit in 15 quarters.
Potential upside for Samsung shares on the profit forecast.
First profit in three years signals turnaround in a major business segment.
Market effects
Improved competitiveness of Exynos may pressure Qualcomm and MediaTek.
Boosts South Korean semiconductor sector sentiment.
Highlights shift toward in‑house chip designs for major smartphone makers.
Counterpoint
Profit forecast may be optimistic if demand for Exynos chips softens.
Key entities
- companySamsung Electronics
Korean electronics conglomerate with non‑memory and foundry divisions.
- companyQualcomm
Competitor in mobile application processors.
