Samsung Electronics sees better prospects for the supply of semiconductor chips in 2022, but limitations in the income of its Harman Division.
The Harman Division consists of the automotive components business, which designs and develops connected products and solutions for automakers; and the lifestyle audio business, which offers consumer audio products and professional audio solutions.
Harman, as a market leader in automotive components, supplies car manufacturers with products that apply innovative technologies.
And in the audio market, it has firmly established the brand’s reputation among consumers and audiophiles.
In 2021, global automobile production, which directly influences the automotive components business, increased 1% compared to 2020, according to an LMC global production forecast in 2022.
In particular, shortages of semiconductors disrupted automobile production in 2021, and as a result, Harman posted lower revenue and increased inventory.
For now, LMC expects production limits stemming from the Covid-19 pandemic to gradually lift, and also expects component supply shortages to ease in 2022.
At the same time, LMC projects auto production in 2022 to rise 12% year-on-year.
Samsung
From Samsung’s perspective, as the semiconductor supply imbalance changes every month and uncertainties remain high, revenue growth is likely to be limited despite strong demand.
At the Harman Division in 2021, both revenue and operating profit increased year over year on the back of a recovery in demand from sluggish levels amid Covid-19 from automakers and consumers; and also to the continuous improvement of profitability, including those related to development.
Revenue increased KRW 0.8562 billion (9.3%) to KRW 10.0399 billion and operating profit increased KRW 0.5436 billion (979.1%) to KRW 0.5991 billion.
Harman posted the best results since its acquisition in the automotive components, consumer audio and professional solutions markets, despite a challenging business environment caused by semiconductor shortages and supply chain disruptions.
By proactively addressing the transition to digital cockpits, Harman gained early dominance in the infotainment market and an order for 5G telematics control units (TCUs).
