Samsung Display plans to start production of QD (quantum dot)-based panels in the fourth quarter of 2021. Samsung Electronics has reported financial results for the third quarter ended September 30, 2021. Total consolidated revenue was a quarterly record of KRW 73.98 trillion, a 10% increase from a year earlier, which was the previous high. Operating profit increased 26% from the previous quarter to KRW 15.82 trillion, the second-highest ever, as favorable market conditions continued in the memory market while the foundry and display businesses achieved robust sales. The finished product businesses also posted solid performances.
The Memory Business saw a significant improvement in earnings with record quarterly bit shipment, as well as the second-highest revenue for DRAM, and the Foundry Business’s results improved due to strong sales to global customers. For the Display Panel Business, earnings rose as major smartphone customers launched new products.
The Mobile Communications Business saw a sequential improvement in earnings on the back of strong demand for new foldable models and low-to-mid-range smartphones as well as growth from tablets and wearables. The Networks Business expanded its global business, including in North America and Japan, and continued to grow 5G network installations in the domestic market.
Samsung will continue to expand the portion of 15-nm DRAM and 128-layer V-NAND, proactively address the server market where demand is likely to grow thanks to new adoptions of DDR5 with rising penetration of a high core CPU, and also pre-emptively secure demand for NAND solution products.
The Display Panel Business posted KRW 8.86 trillion in consolidated revenue and KRW 1.49 trillion in operating profit for the third quarter. Overall display earnings improved compared to the previous quarter primarily due to the strong sales of small to mid-sized OLED panels despite weak performance in the large display business.
In 2022, a favorable environment for the OLED business is expected to continue, thanks to the recovery of smartphone market demand and the higher adoption of 5G phones. Moreover, sales of applications such as laptops and tablets are forecast to grow in earnest. Samsung will strive to turn such momentum into a new growth engine for the Company. Also, amid concerns over supply of some components such as DDIs, the Company will closely monitor its supply chain and take pre-emptive actions to potential risks to ensure uninterrupted product delivery.
In 2022, amid uncertainties over COVID-19, the smartphone and wearable markets are expected to continue growing. The Mobile Communications Business aims to reinforce its leadership in the premium segment by driving the mainstreaming of the foldable category providing innovative technology and differentiated experience such as Galaxy Z Flip3 Bespoke Edition. With these efforts, the Company will strive to achieve solid performance by strengthening mass-market 5G line-up and Device Ecosystem business