Chip inventory of Samsung and SK hynix swollen in Q1

Due to a slowdown in the economy, semiconductor inventories are piling up like snowballs. The inventory assets of Samsung Electronics’ semiconductor business (DS) and SK hynix alone have reached nearly 50 trillion won due to weak global demand.

According to the Financial Supervisory Service’s electronic disclosure system on Tuesday, Samsung Electronics’ DS division had inventory assets of 31 trillion and 948.1 billion won at the end of March, up 2 trillion and 890.5 billion won (9.9%) from 29 trillion and 57.6 billion won at the end of last year. Compared to the end of 2021 (16 trillion and 455.1 billion won), it has doubled in just a year and three months.

SK hynix reported that its inventory assets in the first quarter were 17 trillion and 182.2 billion won, an increase of 1 trillion and 517.5 billion won (9.7%) from the end of last year. SK hynix’s inventory assets have also increased nearly two-fold compared to the end of 2021 (8 trillion and 950 billion won). Combined, the total increments of inventory assets from both the Samsung DS division and SK hynix amounted to 4 trillion and 408 billion won in the first quarter of this year.

Although global demand for semiconductors has declined due to the economic slowdown, semiconductor factories operate 24/7 to produce chips. However, SK hynix has been reducing wafer input since the fourth quarter of last year (October to December), and Samsung Electronics has been reducing memory chip production in the first quarter of this year. “Samsung Electronics has joined the ranks of production cuts, and as the inventories piled up at their clients decrease, the inventory of both companies will accordingly decrease from the second quarter,” a semiconductor industry official predicted.


will@donga.com