Samsung has posted disappointing numbers for the second quarter financials, as oversupply and falling prices eat into its LCD TV and monitor business, and price instability wobbles the NAND flash memory market.
The company announced a 12.1 percent decline year-on-year, with operating profits of 1.42 trillion won (its lowest in three years) and sales of 14.11 trillion won. In particular, its LCD business saw an operating profit drop of 30.6 percent.
The only bright spot in the numbers was a six percent jump in demand for 40-inch and larger TV panels. Despite the volatile trading conditions, Samsung has finalized its deal with Sony to invest a massive 1.9 billion US dollars in an 8th generation LCD factory for its joint venture LCD company S-LCD Corp.
The new site will concentrate on the production of large-screen panels, between 46 and 52-inches. When it opens in 2007, it will be able to produce 50,000 substrates a month. Each 2,200 mm x 2,500 mm glass substrate can be cut to produce up to eight 46-inch panels or six 52-inch panels.