Samsung Electronics and SK Hynix reported strong sales growth in China in 2024, attributed to the “Old-for-New” Policy and preemptive stockpiling by manufacturers. Samsung’s exports to China rose to 64.9 trillion won, exceeding U.S. exports. Meanwhile, SK Hynix saw substantial recovery in sales and profits compared to 2023, marking a significant turnaround for both companies in a competitive market.

In 2024, South Korean semiconductor giants Samsung Electronics and SK Hynix experienced significant sales growth in China, primarily driven by China’s “Old-for-New” Policy. The policy encourages consumer trade-ins for new products, which has led to increased demand for semiconductors. Additionally, concerns over tariffs due to Donald Trump’s election victory prompted Chinese manufacturers to stockpile memory chips, further benefiting these companies.

Samsung Electronics reported an impressive annual export total to China of 64.9 trillion won (approximately USD 44.8 billion) in 2024, marking a 53.9% increase from the previous year’s 42.3 trillion won. Notably, this figure slightly exceeded Samsung’s exports to the United States, which were recorded at 61.5 trillion won.

Furthermore, Samsung China’s semiconductor division achieved notable revenue growth, with its Xi’an-based NAND flash memory unit generating sales of 11.2 trillion won, up from 8.7 trillion won. Moreover, Shanghai Samsung Semiconductor Co. nearly doubled its revenue to 30.1 trillion won from 15.6 trillion won in the previous year, showcasing substantial market expansion.

In a similar vein, SK Hynix also reported strong sales figures in China. Its Wuxi-based subsidiary, SK hynix Semiconductor China, recorded sales of 5.6 trillion won and an operating profit of 598 billion won in 2024, a significant recovery from a net loss of 1.5 trillion won the preceding year, indicating an improvement of around 745 billion won.

SK hynix’s sales subsidiary, SK hynix (Wuxi) Semiconductor Sales, displayed growth as well, boasting sales of 13.1 trillion won and a net profit of 1.4 trillion won in 2024. This represented increases of 64.3% and 65.4%, respectively, compared to the previous year, underscoring the positive trend in their business performance.

In summary, Samsung Electronics and SK Hynix have both benefited from China’s “Old-for-New” Policy and strategic stockpiling in response to tariff concerns. Samsung’s exports to China reached record highs, surpassing exports to the U.S., while SK Hynix reported significant recovery and growth in its sales and profits. These trends indicate a robust demand for semiconductors in the Chinese market as 2024 progresses.

Original Source: www.trendforce.com

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