Today, Samsung Electronics revealed through a regulatory filing that it wants to borrow “a few” billion dollars from Samsung Display. The company intends to get a loan of 20 trillion won ($15,76 billion) from its display arm and is willing to pay interest.
Samsung Electronics intends to borrow the $15 billion at a 4.6% interest rate and aims to pay back Samsung Display until August 2025 (via Reuters). The Electronics division reportedly wants to use this loan as operational funds, which cover day-to-day expenses, including employee salaries.
Samsung Display had a solid fourth quarter last year
Samsung Electronics posted an 8% year-on-year revenue decline and a 69% YoY drop in operating profit in Q4 2022. Annual revenue was at its highest, but year-round profit was down to just 43.38 trillion won ($35 billion).
At the same time, while Samsung Electronics, Samsung DX, and the semiconductor division had difficulties in Q4, the Display arm had a brilliant fourth quarter last year thanks to its business with Apple and the latter tech giant launching the iPhone 14 series.
The chip division reported an 8-year-low profit in Q4 due to the chip industry's downturn, but Samsung has no plans to cut investment in semiconductors this year. Either way, it looks like Samsung Electronics is turning to Samsung Display for a hefty $15 billion loan with interest. But whether or not the plan pans out and Samsung Display agrees to this loan proposed by the Electronics division remains to be determined.
