The best Samsung deals! Galaxy Book 4 series, Watch 6, S24 Ultra or Z Flip 5! - Join SamMobile on Telegram!

SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.

Notifications
    News for you

    Samsung Electronics to borrow a few billion dollars from Display arm

    Business
    By 

    Last updated: February 14th, 2023 at 15:54 UTC+01:00

    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.

    BusinessGeneral Samsung DisplaySamsung Electronics

    You might also like

    Samsung’s first acquisition in 7 years could be of an AC company

    Samsung’s first acquisition in 7 years could be of an AC company

    Despite having billions of dollars in cash, Samsung hasn't made any acquisitions over the past seven years. Its last major acquisition was that of Harman International. Recent reports have suggested that the company is looking to be more active in the mergers and acquisitions segment now, and it appears Samsung may already have a large.t […]

    • By Adnan Farooqui
    • 1 day ago
    Samsung expects 2024 chip revenue returning to 2022 level

    Samsung expects 2024 chip revenue returning to 2022 level

    A significant decline in chip revenue has hurt Samsung's profits significantly, but the company is now expecting a return to form, on the back of increased demand for memory products for AI applications. The company is now expecting its chip revenue this year to return to the 2022 level, which was before the downturn, and […]

    • By Adnan Farooqui
    • 5 days ago
    NVIDIA CEO signs his approval on Samsung’s HBM3E memory, literally

    NVIDIA CEO signs his approval on Samsung’s HBM3E memory, literally

    Samsung's HBM3E 12H advanced memory chips have received high praise from NVIDIA CEO Jensen Huang recently. He confirmed that the company is testing these new memory models for integration into its GPUs, as unrelenting demand continues for its products. Such is the nature of the close collaboration between these two titans of the industry that […]

    • By Adnan Farooqui
    • 5 days ago
    Samsung Electronics gets $4.3 billion from Samsung Display to fund semiconductor expansion

    Samsung Electronics gets $4.3 billion from Samsung Display to fund semiconductor expansion

    Samsung Electronics is the leading supplier of memory chips and other semiconductor products. It has been heavily investing in the expansion of its production facilities as demand for memory products, particularly High Bandwidth Memory, is expected to rise in the coming quarters. There are many subsidiaries that operate under Samsung Electronics. Samsung Display is one […]

    • By Adnan Farooqui
    • 5 days ago
    Amid AI boom, NVIDIA is loving Samsung’s advanced memory chips

    Amid AI boom, NVIDIA is loving Samsung’s advanced memory chips

    NVIDIA has emerged as the leading supplier of AI semiconductor solutions across the globe. There's incredible demand for its products as companies jump on the AI bandwagon with new solutions and services. AI semiconductors require advanced memory chips and Samsung finds itself in a good position to cash in on this boom. It has a […]

    • By Adnan Farooqui
    • 6 days ago
    Samsung doubling down on AI to secure business growth

    Samsung doubling down on AI to secure business growth

    Amid uncertainties in the global business environment, Samsung is doubling down on what it considers to be a significant driver of future growth. We've seen an increasing application of artificial intelligence in its products, from smartphones to even washing machines, and the company has said it will continue to focus on AI to drive growth. […]

    • By Adnan Farooqui
    • 6 days ago