Some big and interesting news is coming our way from the South Korean tech giant Samsung. Just recently, a piece of information about a regulatory filing was unveiled. As per this information, Samsung Electronics is going to borrow a few billion dollars from Samsung Display. Quite interesting one unit of the company is borrowing money from the other unit.
The information reveals that the company plans to acquire a loan of 20 trillion won ($15,76 billion) from the display arm. Interestingly, Samsung Electronics is ready to pay the interest on the borrowed money. It is reported that the loan will be issued at a 4.6% interest rate. Furthermore, Samsung Electronics says that it will pay back the loan by August 2025. It is reported that Samsung Electronics will utilize the loan as operational funds. These include day-to-day expenses and employee salaries.
Samsung faced quite low revenues in Q4 2022. As per the latest data, Samsung Electronics received an 8% YoY decline in revenue. Besides this, a 69% YoY fall was observed in operating profit in the last quarter of 2022. On the other hand, the annual profits were quite higher. But the analysis of year-round profit revealed that it declined by almost 43.38 trillion won ($35 billion).
In addition to this, other division of the tech giant i.e., Samsung DX, and the semiconductor division also faced tough times in Q4 2022. Comparatively, the Display arm was quite successful with excellent performance. Reportedly, it was due to the business with Apple. Since Apple introduced the iPhone 14 series last year.
Furthermore, the chip division observed a downfall of 8-year-low profit in Q4. It was possibly due to the overall less demand and downturn in this respective sector. Besides this, the company has no intentions of reducing the investments in the semiconductor division in the following year. However, there is no further information on whether the two units aggress on this decision or not.