Good morning and good evening. Thank you all for joining this conference call. Now we will begin the conference on the fiscal year 2022 first quarter earnings results by Samsung Electronics. This conference will start with a presentation, followed by * and 1 on your phone during the Q&A. For cancellation, please press *2, that is * and 2 on your phone. Now we shall commence the presentation on the fiscal year 2022 first quarter earnings results by Samsung Electronics. Welcome, everyone. This is Ben Suh from Investor Relations. Thank you for joining our first quarter 2022 earnings call. For additional details regarding our quarterly results, please refer to our earnings presentation, which is available on our IR website at www.samsung.com/global/ir. On the call with me today are the following representatives from each business unit. We have EVP Jinman Han representing Memory, VP Kenny Han for System LSI, EVP Moonsoo Kang for Foundry, EVP Kwon-Young Choi for Samsung Display, VP Sung-Koo Kim for Mobile Experience, and VP Young Moo Kim for Visual Display. I want to remind you that some of the statements we'll be making today are forward-looking, based on the environment as we currently see it. All such statements are subject to certain risks and uncertainties that may cause our actual results to be materially different from those expressed in today's discussion. Also, please note that last December, we merged the IM and CE divisions to form the DX division. However, the earnings call materials provided today are based on the business structure before the reorganization to prevent investor confusion regarding our results. Before reviewing our quarterly results, I would like to address the first quarter dividend. Today, the board of directors approved a quarterly dividend of KRW 361 per share for both common and preferred stock. Based on the annual dividend payout under the current dividend policy, the total payout for the first quarter is KRW 2.45 trillion, or one-fourth the annual total for 2022. It will be paid in mid-May. With that, I would like to present the results for the first quarter. We once again delivered record results despite a highly challenging external environment. Thanks to the hard work and dedication of our employees and strong cooperation with our partners to deliver the products in demand by our customers. Total revenue in the first quarter grew 1.6% sequentially to KRW 77.8 trillion, setting a new all-time quarterly high for the third consecutive quarter. We raised the bar again by delivering solid growth across all our businesses, with the DX Division registering its highest revenue since 2013, thanks to our premium focus strategies, and the DS Division setting a historical high for quarterly revenue by actively meeting strong server memory demand. On a year-on-year basis, revenue grew 19%, driven mainly by the memory and Visual Display businesses. I would also like to highlight that there was at least 10% growth in all of our business units, except for large panels in which we are ramping down LCDs. Gross profit decreased by KRW 0.9 trillion sequentially to KRW 30.7 trillion, mainly due to increased material and logistics costs affected by macro issues. Gross margin also declined slightly compared to last quarter, falling 1.8 percentage points to 39.5%. SG&A expenses were lower by KRW 1.2 trillion quarter-over-quarter to KRW 16.6 trillion, mainly due to a reduction in R&D, combined with more efficient advertising and promotional spending. As a percentage of sales, they declined by 1.9 percentage points. Although R&D was down sequentially, this was due to the record levels set in the previous quarter, and R&D spending reached an all-time high for a first quarter as we continued to invest in future growth. Both operating profit and operating margin increased quarter-on-quarter, with operating profit reaching KRW 1.4 trillion due to solid sales of S22, the new flagship smartphone, and premium TVs, despite a decline in memory ASP. On a year-on-year basis, both operating profit and operating margin increased substantially, rising by 51% and 3.8 percentage points to KRW 14.1 trillion and 18.2% respectively. I will now briefly review the results of each business unit. In Memory, we outperformed market expectations amid a milder-than-expected price decline. We also achieved record high quarterly sales for server due to an active portfolio shift to meet solid demand from server and PC. In System LSI, the results improved sequentially as positive impacts from favorable exchange rates and higher ASP outweighed the effects of a decline in SoC and CIS supply amid a weak mobile season. In Foundry, demand was solid across all applications. Despite concerns around delivery issues, we increased our advanced process portion of production and were able to align on a stable yield trajectory. For the display segment, the mobile panel business delivered historically high results for a first quarter, driven by strong sales at major smartphone customers and increased sales in new application areas such as gaming. In the large panel business, the production yield of QD displays improved faster than projected, and monitors featuring QD display were released during the quarter. For the MX business, although we faced component shortages, geopolitical issues, and adverse currency effects, we delivered sequential increases in both revenue and profitability. This was mainly due to strong sales centered on S22 Ultra, which integrates specialties of the Note, positive responses to new mass market 5G models that offer flagship experiences, and solid sales of device ecosystem products such as premium tablets and watches. The network business expanded its sales overseas while meeting domestic 5G expansion needs. In VD, revenue and profit grew year-on-year even amid declining market demand, with increased sales of premium high-value strategic products such as Neo QLED and Super Big TVs. In digital appliances, we achieved record high quarterly revenue based on growth trends across our entire premium lineup, centering on Bespoke, despite an increased cost burden. Regarding currency effects relative to the Korean won, positives related to the strong US dollar for the component businesses outweighed adverse impacts from a strong US dollar and weakness in some emerging currencies for the finished product businesses. All in all, the net result was positive, resulting in an approximately KRW 300 billion gain for operating profit compared to the previous quarter. Next, I want to share our business outlooks. In the second quarter, we expected macro uncertainties and logistics issues will persist. For our company-wide business outlook, DS will work to meet expected solid demand, and DX will focus on securing profitability by expanding sales of new smartphone and TV products while strengthening its leadership position in the premium segments. Now for each business unit's outlook. In memory, we will focus on meeting expected solid demand centering on server, while maximizing the quality of our portfolio by expanding sales of high value-added products, leveraging our market-leading technologies. For System LSI, we will mainly focus on maximizing the supply of key components such as SoCs and image sensors. For Foundry, we will solidify our technology leadership position with the world's first mass production of the 3-nanometer gate-all-around process and prioritize increasing supply to our global customers. We also expect to continue to win new business opportunities and new customers. For the display segment in the mobile panel division business, despite macro uncertainties, we expect to maintain solid results compared to last year, thanks to continued solid demand from major customers for their flagship smartphones and demand for gaming and other applications. In the large panel business, we expect revenue to increase with the release of TVs featuring QD display and losses to narrow. LCD production will be ramped down as planned. In the MX business, amid improved availability of key components, we expect solid sales of S22 and expanded sales of new 5G models for the mass market to fuel significant year-on-year revenue growth. We expect to achieve solid profitability despite macro impacts by utilizing our global supply chain management capabilities. For network, we will deliver a stable supply of products to our telecommunications customers and also work to win new business opportunities. For VD, we will focus on selling new models, including Neo QLED and The Freestyle, and capture demand for premium products to help counter an expected market slowdown. For digital appliances, we expect to increase revenue and profitability by improving the product mix, with increased availability of Bespoke premium products in the global market and by expanding sales of air conditioners amid strong seasonality. Now let's move on to our outlook for the second half of the year. For our company-wide business outlook, as we project uncertainties related to the macro environment and geopolitical issues to persist, our component businesses will prioritize increasing the portion of our advanced processes and expanding into new application areas. New products introduced in the market should help conditions to improve during this period. In the DX Division, we will continue to strengthen our premium lineup leadership position while working to enhance multi-device experiences via seamless connectivity between different products that encompass home, including TVs and digital appliances, mobile, and automotive. We aim to create customer experiences on a level that only Samsung can provide. Now for each business unit's outlook, for the memory business, we expect server demand to remain solid, backed by an accelerating shift to high core CPUs. We also anticipate a recovery in mobile demand on effects of new model launches later this year. Thus, we plan to extend our leadership position by increasing sales of next-generation interfaces, such as DDR5 and LPDDR5X, and by focusing on a high value-added product portfolio. System LSI will focus on reinforcing its lineup of SoC models targeting the volume zone. For Foundry, we will push to outperform the market and also achieve meaningful profit by raising the yield and increasing the portion of our advanced processes. Meanwhile, we will adopt pricing strategies to enable continued investments and solidify technology leadership in the GAA process. For display in the mobile panel business, we expect sales to increase driven by expansion of foldable products and the accelerated adoption of OLED in new application areas such as IT, gaming, and automotive. The large panel business will establish its leadership position in the premium segment and narrow losses with QD Display. The MX business will target to maintain a solid level of profitability. First, we will expand our premium user base by improving flagship experiences. Second, we will maximize sales of new foldable products via strengthened cooperation with our partners and offer an undisrupted supply to meet the market demand. Lastly, we will increase sales of new device ecosystem products that will enhance customer experiences. For network, we intend to maintain our growth momentum by meeting domestic needs for 5G installations in a timely manner and actively expanding our business in overseas markets. We will also continue to reinforce our leadership position in vRAN or virtualized radio access network technology. For VD, we will strengthen our premium market position by expanding sales of our differentiated strategic products, such as Neo QLED 8K and Lifestyle products during a seasonally strong period, and by sales of innovative products such as MicroLED and Odyssey Ark. For digital appliances, as issues related to material costs and logistics are likely to persist, we will continue to focus on increasing sales of premium products and enhancing local production capabilities of our global manufacturing base. Now, turning to capital expenditures. CapEx in the first quarter was KRW 7.9 trillion, with KRW 6.7 trillion invested in semiconductor and KRW 0.7 trillion in display. Memory investments concentrated on infrastructure at P3 and on process migrations at fabs in Hwaseong, Pyeongtaek, and Xi'an to address growing future demand. Foundry investments focused on developing and establishing the production capacity of advanced processes under 5 nm. Next, I would like to share some of our key activities in sustainability management. In the first quarter of this year, we released the Galaxy S22 series, which features specific components made from high-quality recycled plastic created from discarded fishing nets. We are committed to preserving the environment. By 2025, all new Galaxy products will use recycled materials, and single-use plastics will no longer be used in packaging. Meanwhile, the memory business' Portable SSD T7 acquired a low carbon product certificate as it reduces carbon emissions. In particular, it uses eco-friendly pulp rather than plastic for the tray in the packaging material and consumes less energy in the usage stage. We will strive to achieve low carbon product certification in all subsequent products and add to our certified green low carbon product portfolio. Next, in February, Samsung joined forces with the Ministry of Small and Medium Enterprises and Startups to alleviate a domestic shortage of COVID-19 self-diagnostic testing kits by supporting a local kit manufacturer. Our collaboration helped improve production by early stabilization of new facilities and by supporting logistics firms and partners to improve the local response to COVID-19. We are committed to finding new ways to strengthen ESG management and incorporating them into our business. To learn more about our latest ESG initiatives and priorities, please visit our corporate sustainability website. I will now turn the conference call over to the representatives from each business unit to present first quarter performances and outlooks for their corresponding business segment. We will start with the memory business. Thank you. Good morning. This is Jinman Han from the Memory Global Sales and Marketing office. The fourth quarter price declines in memory are modest relative to market expectations, thanks to solid demand, mainly from server and PC. As a result, our performance exceeded market forecast. However, results declined slightly quarter-over-quarter due to a one-off special incentive and mild seasonality in some applications. In DRAM, overall server demand continued to show a favorable trend, thanks to increased DRAM content related to rising adoption of high core CPUs, alongside still strong demand from data centers. Starting in the fourth quarter of last year, set build momentum for enterprise PC has been recovering thanks to improvements in component shortages, and demand for high-end products has been solid, which have eased impacts of weak seasonality to a degree. Mobile demand was somewhat affected as launches of new models by major manufacturers were weighed on by effects of the crisis in Ukraine and China's lockdown in major cities amid weak seasonality. We preemptively identified shifts in demand through our own machine learning-based market sensing system and actively responded to server demand. As a result, we exceeded our big growth guidance and achieved record high quarterly sales for server. Next, I will talk about the NAND market. Demand for server SSD from data centers remained solid, thanks to pent-up demand from last quarter, in which set build was partially influenced by disruptions in IC component shortages. Our server OEMs contributed to strong demand for server SSD related to increased investments in new IT infrastructure. The demand trend for client SSD was solid, backed by robust demand for enterprise PCs as companies increasingly follow back to office trend and expand hybrid work models, and by increasing SSD penetration in conjunction with growing adoption of high-end PCs. In mobile, despite ongoing partial improvement of supply for low to mid-price APs and events such as launches of flagship models from major manufacturers, memory demand slowed somewhat due to weak seasonality and inventory adjustment by some customers. Considering the limited inventory situation and future market conditions, we have maintained our business strategy, which is to refrain from excessive expansion of sales and continue to increase our portion of high density, high value-added products as we remained focused on improving the quality of our business. Ultimately, we exceeded our big growth guidance due to reasons above, including the base effect from last quarter. Now, let's move on to the second quarter outlook. In DRAM, for servers, set build will likely depend on the pace as to how quickly supply chain issues get resolved. Thus, we need to continue to monitor the situation meticulously. Meanwhile, we expect the server demand centering on high density products to be relatively solid, aided by continuous penetration of DDR4, 8-channel CPU. As for PC, there are some demand uncertainties caused by inflation as well as economic slowdowns and reduced consumption influenced by the crisis in Ukraine. On the other hand, there is also potential for solid demand based on the continuing trend towards high density combined with the rising penetration of DDR5. In mobile, a surge in raw material prices caused by the Russian-Ukraine war may add pressure to inflation and affect smartphone consumer sentiment, while supply chain issues also present risk factors. However, we see chances of a demand recovery depending on the pace of reopening in some countries, so we need to monitor the situation carefully. Despite a variety of supply constraints, we will continue to pursue the highest quality portfolio by expanding sales of high value-added, high density products while actively responding to demand for applications they show the most growth potential. In NAND, amid shortage in chip production provoked by external issues and impacts of short supply of active passive components, we expect server demand centering on high density products to grow based on the investment expansion mainly for data centers. However, we should keep an eye on possible demand changes considering uncertainties, including macro issues. Meanwhile, due to various macro issues, we expect to see some effects on demand in consumer-oriented product lines. First, for client SSD, consumer PC demand is likely to shrink amid global inflation and effects of the crisis in Ukraine. The enterprise PC demand is likely to be solid, and high density trend of SSDs, backed by increased sales of high-end PCs, will continue. We should ease some effects of weak demand. For mobile, the short-term market environment is unfavorable due to lockdowns in major Chinese cities amid slow seasonality, but consumer sentiment has potential to recover later in the quarter with the launch of new form factor models, with people spending more time outside following gradual easing of quarantine regulations in some countries, and with the resumption of investment in 5G infrastructure. Amid impacts of shortages of active and passive components, we will maintain our efforts to promptly address customer demand, including strong SSD demand for enterprise sector by our business competitiveness. Coming to the full year outlook, we will share our prospects for each application for the year. However, the situation requires continuous monitoring as it is an immense challenge to predict the duration or market ripple effects of various micro, macro issues such as the Russian-Ukrainian war and global inflation. Server demand is expected to be relatively solid compared to other applications, resulting from increased demand for DDR5 and high density trend as high-core CPU transition grows. The pace of improvement in component shortages, which can affect said build, needs attention. For PCs, demand for consumer-oriented products is projected to weaken somewhat due to macro issues and the base effect from last year. Enterprise demand should be relatively solid as companies normalize operations and expand hybrid working patterns. Moreover, considering growth and changes in the utilization of PCs, rising portion of high-end products and growing content per box should help partially offset weak consumer demand. For mobile, it seems that the macro issues mentioned previously will have a greater impact on mobile than on the other applications. However, as the visibility clears on the recovery of the issues, there is potential for a sooner than expected demand recovery. In particular, as major manufacturers are scheduled to release new products in peak seasonality in the second half, we anticipate the said build will recover. In addition, demand centered on high density products and the LPDDR5X, which is a cutting edge interface, is forecast to increase as manufacturers strengthen flagship lineups. Under the circumstances of extremely high uncertainties, we are continually upgrading our machine learning-based market sensing system and allocating more resources to improving the accuracy of our demand predictions in order to secure flexible supply capabilities linked to market conditions. By maintaining a product mix oriented towards server and high-end PCs, we will respond to new demand in a timely manner by expanding supply of cutting-edge interfaces such as DDR5 and LPDDR5X. In addition, while we closely observe changes in market demand, we'll center our portfolios on high-value-added and high-density solutions while steadily realizing cost reductions based on our industry-leading technologies and strengthening our market leadership. Thank you. Morning, this is Kenny Han from the System LSI business. In the first quarter of this year, the supply of major components such as SoC and image sensors decreased due to weak seasonality of the mobile industry and inventory adjustments at manufacturers in China. However, earnings improved quarter-on-quarter, lifted by benefits of foreign exchange movements and increase in ASP. DDI sales increased by over 30% year-on-year for both large panel and mobile display. Despite a weak TV market, TV DDI demand has remained strong, keeping shipments at a steady level. To secure second quarter earnings, we have started shipping SoCs for the volume zone and commenced mass production of new 5G FR2 RFICs, as well as 0.64μm 108-megapixel image sensors. In the second quarter, we expect our SoC supply to grow significantly, backed by yield improvements for flagship SoCs and the addition of mid-range products to our lineup. Meanwhile, demand for high-resolution image sensors in both Korea and China is expected to stay steady. For DDIs, we expect the price to stay solid, given the still tight foundry supply and relatively low driver IC inventory at customers. In the second half of this year, we plan to further expand our lineup of 5G SoCs and supply our cutting-edge ultra-high 108 and 200 megapixel sensors as planned to meet our customers' requests. We expect to deliver higher growth than we have in previous years, thanks to new product launches and lineup expansions, and to achieve improvements in both profitability and sales. Thank you. Good morning, this is Moonsoo Kang from the foundry business. In the first quarter, we achieved our highest ever first quarter revenue, which increased 35% on a year-on-year basis. Thanks to solid demand across all applications, improving yields, and increasing revenue share from our advanced process nodes. In particular, through close collaboration with our semiconductor R&D, we have stabilized the yield trajectory of our advanced process nodes while continuously improving our production capability by stabilizing new equipment. Additionally, we continued our effort to diversify and secure future growth by adding new orders in HPC and consumer segments, where revenue increased 75% and 57% on year-on-year basis, respectively. We are also improving our ability to respond to future demand with new investment in Taylor, USA, as well as in domestic fabs, and by optimizing our currently operating lines. In the second quarter, we expect market conditions to remain tight, with demand exceeding supply across all process nodes. We will continue to improve yields of our advanced nodes to actively address demands from the major customers while striving to expand supply and secure more new orders from global customers. Additionally, we aim to secure technology leadership by completing qualification of the first generation GAA process and entering high-volume manufacturing, being the first in the industry. In the second half of the year, although we expect uncertainties due to a slowdown in economic growth and continued geopolitical instability, we forecast foundry supply to remain short of demand due to rising penetration of 5G and a strong demand for HPC. We will continue to widen the gap in technology leadership by improving the yield and maturity of our first generation GAA process. We also aim to exceed market growth in the second half through yield improvement and ASP increase due to the expansion of our business in the advanced nodes, along with the proper pricing strategy to secure future investment. Thank you. Good morning. I'm Kwon Young Choi from Samsung Display. In the first quarter, although earnings of mobile display business declined quarter-on-quarter, influenced by inflationary pressure and geopolitical issues, they improved year-on-year, boosted by solid demand for premium products and the effects of foreign exchange movements. In particular, the increasing adoption of OLED displays in the notebook PCs and gaming device segments contributed to the results. In the large display business, we recently rolled out QD monitors and TVs, and their outstanding picture quality and performance gained high praise from the market. Additionally, we are quickly improving and stabilizing yield of QD displays. Next, let me share the outlook for the second quarter. Despite risk factors such as a prolonged geopolitical conflict and the lockdowns in some regions in the wake of resurgence of COVID-19, we expect the performance of mobile display business to remain strong, thanks to the continued demand for the smartphone adopting OLED displays. For the large display business, we expect earnings to improve as we ramp down LCD production and expand our shipments of QD products in earnest. Next, let me turn to the outlook for the display market and our core strategies for 2022. While we expect business risk to linger due to growing uncertainties in the external environment, the overall size of smartphone market is likely to stay at the 2021 level, owing to the economic recovery led by the advanced countries. As the smartphone market continues to adopt new technologies such as hole display, UPC, and HQPO, Samsung Display will further widen the gap with competitors through development and early stabilization of such technologies. Additionally, the overall size of OLED display market is likely to expand continuously, owing to the growing demand for OLED displays in markets ranging from IT to automotive and gaming. This expectation is attributable to IT market that has grown by increased demand from non-face-to-face deep services since the outbreak of the pandemic. The automotive market that has high demand for premium displays for electric vehicles and the gaming markets that gravitated towards portable gaming devices offering high picture quality. With the addition of large QD displays to our rigid and flexible mobile OLEDs that are already leading the premium display market, Samsung Display now has a full lineup of solutions with which we can deliver perfect self-luminous displays to wherever they are needed. Moreover, capitalizing on our competitive edge that are unmatched by competitors, we will actively target new OLED display markets and secure long-, mid-, and long-term growth engines by satisfying both ever-growing expectations of consumers and diversifying market demands. Thank you for listening. Good morning, this is Sung-Koo Kim from the MX business. I would like to share with you our Q1 2022 results and outlook for the MX business. In Q1 2022, the mobile market decreased QoQ and YoY due to seasonality and political instability in certain regions. At Samsung, the MX business delivered sequential revenue growth and profitability improvements despite supply shortage issues and a decline in demand in the mobile market. The Galaxy S22 series, which we launched in Q1, generated strong sales, and in particular, the Galaxy S22 Ultra, the top of the series that features the S Pen, has garnered great feedback from our loyal Galaxy Note customers. As a result, the Galaxy S22 Ultra accounted for a higher portion of sales than its predecessor did, helping drive revenue growth. Furthermore, our mass market 5G smartphones, including new A Series models that further strengthened premium experiences, saw sequential sales growth, with their improved profitability also contributing to the Q1 performance. We expanded sales of tablets and continued to generate solid sales of wearables, through marketing that highlighted our device ecosystem products, which included our event where we unpacked our new premium tablet, the Galaxy Tab S8, together with the Galaxy S22. Next, I would like to discuss the outlook for the Q2 2022. We expect the smartphone market to decrease QOQ due to seasonality and a prolonging of the COVID-19 situation and geopolitical uncertainties. For the MX business, we will try to resolve supply shortage issues affecting key component by strengthening cooperation with partners and forming long-term agreements in order to achieve YoY revenue growth. Specifically for the Galaxy S22 series, we expect to resolve supply issues of key component, and we will closely monitor supply balance of other major parts as well in order to maintain strong sales of flagship smartphones. In addition, our marketing centered on core experiences of the new 5G mass market models that we released in Q1 led to positive feedback, so we will actively address demand in the mass market and expand sales of these models. Amid uncertainties related to COVID-19 and the macro environment, we will strive to minimize impacts on our business and secure solid double-digit profitability by stabilizing supply of flagship products and by enhancing the efficiency of our SCM capabilities. Now let me share the outlook for the second half of 2022. While risks related to COVID-19 and parts supply are likely to persist, we expect the smartphone market in 2022 to continue to grow annually, and the wearable market is projected to post another year of high growth in the double digits. The MX business will continue to offer customer-centric, innovative experiences that increase customer satisfaction and loyalty, and thus expand our customer base in the flagship market. For the new foldable models, we will thoroughly prepare to ensure seamless supply of key parts, so we can fully address market opportunities and maximize sales from the moment they hit the market. In addition, we will further optimize experiences tailored to the form factor through collaboration with partners. With these efforts, we will strive to achieve significant growth of the foldable phones following its successful mainstreaming. Also, for device ecosystem products, we will work to increase sales by leveraging enhanced customer value. Following the integration of the DX division, we will cooperate intimately with the VD and DA businesses to further advance seamless connected experiences across Samsung products and ensure they add value to our customers' daily lives. With these efforts, we aim to achieve sales growth in 2022 and also continue solid profitability with improved product mix and operational efficiency. Thank you. Morning, I am Young Moo Kim from the sales and marketing team of Visual Display. First I'd like to review the market conditions and our performances in the first quarter of 2022. Market demand for TV contracted both year-on-year and quarter-on-quarter. The former is due to the base effect of last year's pent-up demand, and the latter was caused by entering weak seasonality following year-end peak season and also by effects of geopolitical issues, including those involving Russia. By closely cooperating with channel partners, we expanded revenue year-on-year by taking advantage of various sales promotion opportunities in each country, and intensively targeting demand for high-value premium products. Furthermore, we improved our profit by enhancing the cost efficiency of sales activities. Next, I'd like to talk about the second quarter and second half forecast of 2022. We expect TV demand in the second quarter to contract both quarter-on-quarter and year-on-year due to acceleration of a trend in which demand shifts from home entertainment to outdoor activities and travel, led by easing restrictions mainly in advanced markets, and also due to pressure from continued uncertainties spurred by geopolitical issues involving Russia. Against this backdrop, Samsung plans to focus on capturing premium demand with new models. In particular, the Neo QLED for 2022 has garnered praise for providing an incredible immersive experience with a new level of picture quality and sound, and also for its minimal design. The Freestyle, praised for its innovation, is creating a significant buzz in market. We will achieve growth in revenue by continuously driving sales of these strategic products. Moreover, we will further optimize our operations by establishing preemptive plans of sales and supply to address market risks such as raw material and logistics issues. For TV market in the second half, although there are opportunities for us to expand sales, including peak season and sporting events, macro risks are likely to continue to cast uncertainties on overall TV demand. Samsung will closely observe the rapidly changing market conditions and take preemptive actions against uncertainties by capturing demand of peak season and sporting events, while also expanding sales of our own differentiated strategic products such as Neo QLED and Lifestyle TV. At the same time, we will solidify our status as a market leader through innovative products like Micro LED and Odyssey Ark. Thank you. Thank you for the presentations, and that sums up the first quarter results presentations. Before we move on to the Q&A session, I would like to share several data points on key business areas. However, due to continued macro and geopolitical uncertainties, we will not be providing annual guidance at this time. In the first quarter for DRAM, our bit growth increased by a low single-digit percentage, and ASP also declined by a low single-digit% compared to the prior quarter. For the second quarter, we expect market bit growth to be in line with a mid-teen% range, and our bit growth should be similar. For NAND, our bit growth increased sequentially by a high single-digit percentage, while ASP declined by a mid-single-digit percentage. In the second quarter, we expect memory bit growth of high single-digit%, and we should be similar to the market. For display in the first quarter, the mobile portion of revenue was in the mid-90% range, and sales volume declined sequentially by a percentage in the high teens%. In mobile in the first quarter, shipments were approximately 74 million units for smartphones and 8 million units for tablets. Smartphone ASP was $278. For the second quarter, we forecast that we will see a decline in sequential sales volume for both smartphones and tablets, but an increase in smartphone ASP. For TVs, sales volume of LCD TVs in the first quarter declined by a mid-single-digit% compared to the previous quarter. For the second quarter, we expect sales volume to decline sequentially by a percentage in the low- to mid-teens percentage. With that, I will now move on to the Q&A session. First, we will start taking questions from the conference call. Now Q&A session will begin. Please press *1, that is * and 1, if you have any questions. Questions will be taken according to the order you have pressed star and number one. For cancellation, please press *2, that is * and 2 on your phone. The first question will be presented by Nicolas Gaudois from UBS. Please go ahead with your question. Good morning, and thanks for taking my questions. The first one relates to memory and specifically DRAM. There has been some recent discussions on Samsung possibly keeping on the 1b-nanometerto go straight to 1c-nanometer. If that is the case, and if so, could you elaborate as to what is actually are with the development of 1 bit nanometer, and when is the intended timing for mass production? And the second question is obviously the current geopolitical situation is likely to impact itself on Russia, but beyond this could you consider either the impact on how inflation may have on smartphones and stuff, as well as possibly product makers? And what is your current expectation for flagship smartphone shipments from the soon put onward and how can Samsung mitigate the impact. Thank you. To answer your question, first of all, I can confirm that it is not true that we have any plans of skipping 1 bit, that's 12nm. Our mass production schedule is on schedule without any disruptions. Regarding the DRAM, as you know, the difficulty of process shrinkage does increase quite deeply. The adoption of EUV, which the rest of the memory industry has just started to adopt on a larger scale, is also the purpose of EUV was to overcome and break through the limitations of the process and node difficulties. That is why we were the first in the industry to adopt EUV on DRAM, and we have already proven the overwhelming technology competitiveness as well as cost competitiveness of DRAM on EUV. In the process of adopting new technologies such as EUV, some plan changes to the original plan would be involved. We think that part of being a leader in the industry is taking on these challenges of adopting new technology and to incorporate that into our technology roadmap. I think what's also becoming quite important is that as IT infrastructure accounts for a larger share of memory demand versus the existing consumer applications, the importance of the ability to supply mature technology products at the right timing is becoming more critical than ever before. I think the process of optimizing the design rules considering yield, stability, cost, and other factors overall is a natural part of developing the advanced nodes. Similar situations have existed before, and right now we are going through this process of optimizing the design rules of this node, considering various priorities. I think it's fair to say that our 12nm development plan is being carried out stably, and the subsequent nodes would also be developed according to our mid- to long-term technology roadmap. To answer your second question, yes, as you mentioned, even during the first quarter, there were difficulties, including the unstable geopolitical situation and also a shortage of the key component for the S22 series. Actually, we were able to deliver very positive sales, especially around the S22 Ultra, which incorporated the experience from our Galaxy Note series. With the increase of Ultra within the S22 series, our product mix improved, our ASPs also went up. Overall in first quarter, our flagship revenue increased quarter-over-quarter. You've asked about second quarter and onward, and we also expect uncertainties, including the SCM disruptions related with COVID-19, as well as the international political instability to continue. There's possibility that these factors may remain for the long term. We do expect we will respond by strengthening our cooperation with partners and also by using long-term contracts to address the supply issues of key components. We do expect that from second quarter our part supply difficulties would be resolved. Also, we will try to minimize the impact of any market uncertainty by carefully monitoring the balance situation of the supply and demand balancing situation of our key components, and also by focusing on stabilizing the supply of the S22 series. With these responses, despite the market uncertainties, we will focus on continuing the positive sales of our flagship smartphone so that we will be able to grow both top and bottom line again, in the second quarter. The next question will be presented by Peter Lee from Citigroup. Please go ahead with your question. I have two questions. The first question is about the memory. Actually, data center demand, which has been expected to be weak, since end of last year, has actually turned around and proven to be quite solid. Also, we're sensing that inventory at the OEM level has also increased since. Do you think that such solid demand on the server side may continue in the second half of this year? Or do you see a possibility of an oversupply as the industry all focus on the server segment? Second question is a foundry question. There is some concern regarding your foundry orders. There's talk that your key customers are moving over to competitor foundries. In that context, I'm wondering if you can share your current status of new order wins on your advanced nodes for the foundry, and what are your future outlook? To answer your question, first of all, yes, I can confirm that there is a relatively strong demand on the server side versus other applications. This strong server application demand is driven by multiple factors. One is that companies are also increasing their IT infrastructure investments, but at the same time, many cloud service providers are also increasing their investments as they move into new growth areas such as AI and machine learning. At the same time, there's also an increase in memory content with the adoption of high core CPUs. Given the fact that the strong server demand is backed up by fundamental demand drivers, I think that there isn't much of a high possibility of there being an excessive memory inventory buildup. Even in the second half, I think these fundamental drivers supporting the server demand will continue. While the underlying server demand appears to be relatively more solid, how that will materialize in actual demand will be dependent on factors including the supply issues around certain components that have caused set build disruptions. That may have impact on second half server demand. Given that, we will continue to very carefully check the demand changing situation so that we're able to provide supply that is in line with market demand. You've also asked about our opinion about a possible oversupply towards server applications. Our answer is that we do not. The possibility of an oversupply to servers is low. The reason why we think that an oversupply towards servers, the possibility is low is the following. Number one is that server companies use a very wide range of different CPUs, and for each CPU, the memory product also has to go through qualification for each node. Also, in the process of switching across nodes or density or different applications, there are restrictions in how much supply can be increased when you consider issues such as material, capacity restrictions, and also the switching efficiency. On top of that, you also have to think about the match of customer requests and supply between DDR4 and DDR5. Considering all of these operational constraints, even though we will try to do our best to respond and meet the customer and market demand, there are some constraints into the increase of supply for servers. To answer your second question about Foundry, even though you've mentioned there are some concern. Actually, the demand of our key customers are above our capacity. It's very solid. We expect the tight supply situation to continue for some time. We have entered into long-term contracts, LTAs, with our key customers. Through this, we're able to gain comfort in terms of stable fab operation and supply stability. 특히 당사의 향후 5개년간, 5개년 구간 수주 잔액은 전년도 매출의 8배 규모입니다. 그리고 선단 공정을 중심으로 당사가 적극적으로 프로모션을 하고 있어서 수주 규모가 더욱 증가할 것으로 전망하고 있습니다. Also, if you look at our order book for the next five-year period, that order book size is around eight times our previous year revenue. Because we are also driving our promotions, especially around our advanced nodes, we expect our order book to continue to grow. 최근의 시장의 우려가 과도하다고 생각하고 있고, 당사는 주요 고객사와 견고한 파트너십을 바탕으로 모바일 외에도 HPC, 네트워크, Automotive 분야의 Tier 1 고객을 확보하여 고객 포트폴리오 그리고 사업 구조를 개선 중이고, 견조한 선단 공정 수요를 바탕으로 안정적이며 지속 가능한 성장을 이어갈 수 있을 것이라고 확신합니다. To answer your question, we think that if there is any concern in the market, it is excessive and unfounded. We are actually establishing very solid partnership with our key customers ranging not only in the mobile segment, but also HPC network and automotive Tier ones. With very solid demand behind our advanced nodes, we are very confident that we will be able to continue sustainable and stable growth going forward. 답변 감사합니다. 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 KB증권의 김동원 님입니다. The next question will be presented by Dongwon Kim from KB Securities. Please go ahead with your question. 질문 기회 감사드립니다. 첫 번째 질문은 Foundry입니다. 지난 분기부터 4나노 수율에 대한 우려가 많이 생기고 있는 것 같습니다. 현재 양산하고 계시는 선단 노드인 5나노와 4나노 수율 현황이 궁금하고요. 현재 개발 진행 중이신 3나노 수율과 생산 시기는 어떻게 전망하시는지 공유 부탁드립니다. 두 번째 질문은 디스플레이입니다. 최근 디스플레이 경쟁사들이 OLED 투자를 증가시키면서 OLED 시장 신규 진입이 가속화되고 있는 것 같습니다. 향후 Samsung Display의 기술 경쟁력과 점유율 유지 전략에 대해 말씀 부탁드립니다. 감사합니다. I have two questions. The first question is a Foundry question. As you would remember, there were a lot of concerns about your 4nm yields since last quarter. In that context, can you share with us the current status of your yield for 5nm and 4nm respectively, which are your advanced nodes currently in mass production? Also, can you share with us the yield of 3nm that you're seeing under development and also the production timing, if you can please, share? Second question is about the display, the OLED side. Recently, competitors have announced new investments into OLED capacity, and so we're seeing more competitors entering the OLED market. Given that competitive situation, how do you plan to maintain your technology leadership and market share? 먼저 Foundry에서 선단 공정 수율 관련해서 답변드리겠습니다. 우선 5나노 공정은 성숙 수율 단계로 접어들었고, 안정적 수율을 바탕으로 주요 고객사향 공급을 극대화하고 있는 중입니다. 4나노 공정의 경우, 초기 수율 ramp up은 다소 지연된 면이 있었으나, 조기 안정화에 주력하여 현재는 예상된 수율 향상 곡선 내로 진입한 상태입니다. 마지막으로... To answer your question first about our Foundry yield, the 5nm node is currently in mature yield stage. It is delivering stable yield, and we are maximizing our supply to our key customers. In the case of 4nm nodes, there was a bit of a delay in the initial yield ramp up, but currently we are back on the expected yield improvement curve, since we have been focusing on early stabilization. 그리고 마지막으로 3nm 공정은 선단 공정 개발 체계 개선을 통해서 단계별 개발 검증 강화로 수율 ramp up 기간을 단축하고 수익성을 향상시키고 공급 안정화를 추진하고 있고요. 그다음에 향후 공정 개발 가속화를 위해서 신규 R&D 라인 확보를 준비 중에 있습니다. You've also asked about our 3nm nodes. Actually, we've improved the node development system from 3nm. We actually now have a verification for each stage of development. This will help us reduce the yield ramp up period later on, improve our profitability, and also ensure a stabler supply. Also, in order to accelerate our development process, we're preparing to secure a new R&D line. 네, 디스플레이 질문 답변드리겠습니다. 최근 치열해지는 OLED 경쟁 하에서 SDC의 경쟁력, 기술 차별화를 유지할 수 있는 전략에 대한 질문을 하셨고요. 답변드리겠습니다. OLED가 하이엔드 스마트폰의 표준으로 자리 잡으면서 최근에는 영역이 미드에서 로우엔드까지 점점 늘어가고 있고, 시장 규모는 지역적으로 확대되는 추세입니다. 반면에 경쟁사들 또한 OLED 투자를 가속화하고 있고, 그러다 보니까 경쟁 환경이 치열해지는 것은 사실입니다. 이에 당사는 Under Panel Camera, 그다음에 hole display 등을 필요로 해서 터치 내장 기술 그리고 최근에 LTPO와 같은 지속적인 기술 혁신을 통해서 경쟁의 패러다임을 LCD의 과거의 양적 경쟁에서 지금 성공적으로 질적 경쟁으로 전환시켰고, 이를 통해서 경쟁사의 격차를 유지해 오고 있으며, 당사의 사업 leadership을 공고히 해올 수 있었습니다. To answer your second question, which was about the OLED and how we plan to maintain our technology competitiveness and then market share. To just describe the OLED market, OLED became the standard in high-end smartphones. Recently, it's been penetrating to mid and low-end products. Overall, the OLED market size is continuing to grow. On the other hand, as the market grew, as you mentioned, competitors have also been picking up their investments in OLED. Competitively speaking, the OLED competitive environment has become quite fierce. Now in order to maintain our gap against the competitors despite this fierce competition, we have shifted the competitive paradigm from a quantitative competition towards a qualitative competition, by continuing our technology innovation on technologies such as Under Panel Camera, UPC, hole displays, embedded touch and also LTPO. 향후 OLED 시장은 IT, automotive, gaming 등 산업 전반의 영역으로 확대될 것으로 전망되고 있으며, 특히 당사는 그런 form factor 혁신, 그리고 초고화질 Eco²와 같은 저소비력 기술 등 신기술들을 지속하여 시장 주도권을 유지하고 경쟁의 격차를 확대시킬 수 있는 그런 적기 투자로 smartphone에서 가졌던 지위를 이어나갈 수 있도록 하겠습니다. 이와 함께 당사는 축적된 지적재산권을 보호하기 위해서 많은 노력을 할 것입니다. 지난 분기에 말씀드린 것처럼 당사가 쌓은 OLED 기술을 보호하고 정당한 가치를 받을 수 있도록 다양한 조치를 강구하고 진행해 나가도록 하겠습니다. Looking forward, the OLED market is expected to have very positive outlook as it expands beyond smartphones to other IT applications, automotive as well as gaming. We will maintain our market leadership by continuing to develop innovative new technologies, such as form factor innovations, ultra high picture quality, and also low power technology such as Eco². Also, we will make timely investments to further widen the gap between us and the competitors, so that we're able to maintain the status and position we have in the smartphone market onto these new applications. Another focus that we will be placing is IP protection. As I mentioned during the last conference call, we will continue to bring in and implement various measures to protect our OLED technology related IP and also to have it recognize its fair value. 네, 답변 감사합니다. 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 J.P. Morgan의 박정주 님입니다. The next question will be presented by JJ Park from J.P. Morgan. Please go ahead with your question. 질문 기회 감사드립니다. MX랑 VD 관련돼서 질문이 있는데요. 최근에 작년도 foldable smartphone 전체적으로 기대보다 잘 팔렸고, 최근에는 다른 업체들도 foldable smartphone 모델을 출시하고 있는데 올해 전체적인 시장 성장 전망이랑 그다음에 삼성이 전체 foldable 시장에서 어느 정도 위치를 차지할지 궁금하고요. 두 번째 VD 관련돼서 아까 말씀하신 guidance 하반기 때 전체 시장에 대해서 좀 cautious하게 말씀해 주신 것 같은데, 올해 하반기 global TV 시장 어떻게 보고 계신지 말씀해 주시면 감사하겠습니다. I have two questions. First question is about the MX. The foldable that you launched last year actually was sold more than originally expected. Also, this year, competitors are also lining up foldable models for launch. Given all of that, what is your outlook for foldable market growth this year? And with that market, what is your goal in terms of position? Second question is about the VD side. I think during your presentation you provided cautious guidance for second half market outlook. In that context, can you share with us your global TV demand outlook for the second half? Foldable 답변드리겠습니다. 시장부터 전망 말씀드리면 올해 foldable 폰 시장은 전년 대비 두 배 수준으로 성장하고, 그 이후에도 고성장을 이어갈 것으로 전망하고 있습니다. To answer your first question about foldable market growth, we expect this year foldable market will grow around 2 times versus last year, and that going forward it will continue to grow at high levels. 저희는 하반기에 있을 foldable 신모델 출시 준비에 만반을 이미 기하고 있습니다. 그 초기 공급부터 차질이 없도록 초기부터 철저하게 준비하는 것은 당연한 것이고, 또 고객에게 저희가 준비하는 foldable 경험을 효과적으로 잘 알릴 수 있도록 해서 그 신모델 출시 효과를 극대화할 계획입니다. 이렇게 해서 그 Z 시리즈의 판매 확대세를 이어가고 S 시리즈에 버금가는 주력 제품으로 만들어 가겠습니다. 그리고 기술 리더십 기반으로 제품 완성도를 높이는 것에 더해서 그 파트너사와의 협력을 더욱 폭넓게 추진해서 foldable form factor에 최적화된 사용자 경험을 향상시키기 위한 혁신을 계속할 것입니다. Also regarding our goals and position, we are currently all hands on deck regarding preparing the new foldable model, scheduled for launch in the second half. This involves not only making the supply and production preparation so that there are no disruptions and there's smooth supply from the beginning of the launch, but also this involves maximizing the effects of the new model launch by finding ways of more effectively delivering the foldable experience to our customers. Our goal in terms of foldable is to continue the increase of Z series sales, so that Z series becomes another main pillar next to the S series within our business. In addition to enhancing the completeness of the foldable product based on our technology leadership, another emphasis is to further widen the cooperation and collaboration programs that we have with partners, so that the user experience becomes more optimized for the foldable form factor. VD 말씀드리겠습니다. 앞서 말씀드린 것처럼 하반기 TV 시장은 성수기에 진입한다는 것과 또 스포츠 이벤트 개최한다는 것, 그래서 TV 수요 증가의 기회 요인이 있는데, 동시에 이제 각국이 방역 정책을 완화하면서 소비 패턴이 변화될 것으로 예상이 되고, 또 거시경제 측면에서도 여러 변수가 상존하고 있어서, 예년보다 예측이 어려운 상황입니다. To answer your question about second half global TV demand outlook, in the second half, there are some upside factors in terms of demand increasing, including the fact that second half is usually the strong season. There's seasonality for TVs in the second half, and also there's some sports events in the second half that would be upside factors to TV demand. But also it's more difficult this year to forecast demand than usual years, given that there's many variables, including the possible change in consumption patterns as some countries go back to reopen and ease their social distancing policies. Also there's many variables in terms of macroeconomic side. 다만 이제 이러한 수요 불확실성 속에서도 프리미엄이랑 초대형 스크린은 여전히 수요가 견조할 것으로 예상이 되어서 당사는 Neo QLED 8K 그리고 초대형 Micro LED 같은 프리미엄 제품군 중심으로 하반기 시장 수요를 선도해 나갈 예정입니다. 동시에 이제 급변하는 환경 속에서 시장 센싱 강화를 통해서 공급 및 판매 리스크에 선제적으로 대응해 나갈 계획입니다. Now despite that demand, overall demand uncertainty, we do expect that there will be solid demand still around the premium and ultra large size screen segments, and that is why our plan is to continue to lead market demand in the second half around the premium, product segments, such as our Neo QLED 8K, ultra large size, and also Micro LEDs. Also, we would continue to strengthen our market sensing activities, within the rapidly changing environment to be able to preempt, supply and sale size risks. 예, 답변 감사합니다. 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 신한금융투자의 최도연 님입니다. The next question will be presented by Doyeon Choi from Shinhan Investment. Please go ahead with your question. 안녕하세요. 신한금융투자 최도연입니다. 질문해 주셔서 정말 감사드리고요. 저는 간단하게 메모리 질문 하나 드리고 싶은데요. 최근 잘 아시듯이 이 매크로 불확실성이 너무 크게 지속이 되면서 시장에서는 이 분기 스마트폰과 PC 쪽에서 나타나는 반도체 수요 약세를 많이 걱정을 하고 있는 상태인데요. 삼성전자가 보시는 이 분기, 더 나아가 3분기에 대한 수요 전망을 어떻게 하시는지 말씀해 주시면 감사하겠고요. 그리고 그렇게 생각하시는 배경이나 이유도 같이 말씀해 주시면 더 감사하겠습니다. I have one question regarding the semiconductor demand. Recently with so much macro uncertainty, I think there is increasing concern that there will be weak demand in second quarter for smartphone and PC semiconductor demand. In that context, can you share with us your outlook for PC and smartphone related semiconductor demand for second and third quarter, and also the reasons why? 예, 스마트폰과 PC에 대한 수요 전망 답변드릴게요. 요즘 시장에는 항상 이 불확실성을 얘기하는 이슈들이 있지만 특히 지금 일어나고 있는 이런 여러 가지 매크로 이슈들은 파급력, 그리고 지속시간 이런 거 봤을 때 정말 속단하기가 어려운 것이 사실입니다. 그리고 PC하고 모바일 같은 경우에는 특히 소비자향 이 사업 비중이 큰 응용이니까 인플레이션 그리고 COVID-19, 그다음에 COVID-19으로 인한 봉쇄, 이런 이슈들의 영향을 직접적으로 받게 됩니다. To answer your question. Well, I guess there was always uncertainties in the market, but the type of macro issues that we're currently experiencing, I think particularly more difficult for us to forecast in terms of its ramifications or how long it may last, especially the PC and mobile applications that you've mentioned, consumer applications account for a large share of PC and mobile, and therefore it's more directly affected by issues such as inflation or lockdown related with COVID-19. 응용별로 저희가 생각하는 전망을 말씀드리면, PC 같은 경우는 이제 고사양 PC, 즉 하이엔드 PC 그리고 기업향 수요, 커머셜 수요라고 하죠. 이쪽은 견조한 수준을 보일 것으로 전망합니다. 소비자 수요는 매크로 이슈가 영향이 있어서 약세를 보일 수 있는데요. 게임, 하이브리드 워크 이런 PC의 스펙이 증가돼야 된다는 필요성과 함께 여기에 이제 부하돼서 고용영화가 되는 영향이 있어서, 이러한 약세 영향이 일부 상쇄될 수 있지 않을까, 이렇게 지금 보고 있습니다. Now to answer your question first on the PC side, within the PC, we think that the demand for high spec PCs and commercial PC demand would remain solid. Now the consumer PC application, we're expecting the demand to be somewhat weak or soft, given the impact of various macro issues we've been talking about. Even within the consumer PC segment, there is a drive towards higher spec PCs from gaming or hybrid work needs. Also, there is this consistent trend of higher density in PCs, which may partially offset the softness in consumer PC demand. 네, 그리고 모바일 수요도 이 매크로 영향 때문에 위축되고 있는 게 사실인데요. 5G하고 이제 신규 폼팩터 이게 확산이 본격 전환되는 시기가 이제 오기 때문에 경기 회복하고 소비 심리가 이렇게 개선되면 수요 역시 회복되지 않을까 이렇게 기대하고 있습니다. 특히 하반기부터는 저희가 그 고사양 제품인 LPDDR5X 채용이 이제 본격적으로 될 거거든요. 그래서 고용력, 이게 이제 고용영화가 지속되는 그런 영향을 고려해 볼 때 메모리 수요에 대한 기본적인 니즈는 충분하다, 이렇게 생각하고 있습니다. 감사합니다. Regarding the mobile memory outlook. It is true due to the impact of various macro issues. Mobile memory demand is somewhat soft. That is true. Looking towards the second half, there will be continued penetration of 5G and also the introduction and wider penetration of new form factors. Given that if economy recovers and consumer sentiment also improves, this may actually work together to drive a rebound of mobile demand. Especially what we're looking forward to in the second half is that adoption of LPDDR5X, which is the higher spec product, will become more large scale and therefore this will continue to drive the higher density trend on the mobile side. Considering that, we think that the basic need towards mobile memory is sufficiently there. 네, 답변 감사합니다. 시간 관계상 질문 하나만 더 받겠습니다. 마지막으로 질문해 주실 분은 다이와 증권의 김성규 님입니다. The last question will be presented by Seong-Kyu Kim from Daiwa Capital Markets. Please go ahead with your question. 질문 기회 감사합니다. 오늘 좋은 실적 축하드리고요. 저도 두 가지 질문이 있습니다. 첫 번째 질문은 메모리 쪽, 그리고 디스플레이 쪽에 질문드리겠습니다. 메모리 관련해서는 원자재 이슈랑 생산 관련된 질문을 드리고 싶은데요. 좀 전에 수요 측면에서 부품 부족 이슈에 대해서 말씀을 해주셨는데, 최근에 이런 매크로 이슈들로 인해서 장비, 반도체 장비 도입이 지연되고 있고, 원자재 수급 어려움이 지속되고 있는 상황인데요. 이런 서플라이 체인의 여러 가지 이슈들이 공급 생산 측면에서도 지속되는 것 같습니다. 이런 이슈들의 현황이랑 이런 이슈에 대해서 어떻게 대응하고 계시는지 전략에 대해서 설명해 주시면 감사하겠습니다. 디스플레이 관련해서는 상반기에 주요 고객사들이 당사의 QD 디스플레이를 채용한 제품의 출시가 시작된 것 같은데요. QD 디스플레이에 대한 고객의 반응, 그리고 수요, 수요가 최근에 개선되었다는 얘기도 있었던 것 같아요. 수요 현황, 그리고 마지막으로 상반기 중에 LCD 사업 종료라는 얘기를 지난번에 하셨던 것 같은데, 대형 LCD 사업 종료 계획에 대해서 좀 구체적으로 두 분이 부탁드리겠습니다. 감사합니다. I have two questions. First question is about the memory side. You've talked about the macro factors and the supply issues with certain parts impacting the demand side of the memory business. We're also seeing that it's impacting the supply side of the memory business due to longer equipment lead times and also difficulties in sourcing raw materials. I wonder if you can share with us the current situation that you're seeing of these supply chain issues on the supply side of your memory business and how you plan to respond to this going forward. Second question is about the displays. I think during the first half we'll see many of your OEM customers launch products with a QD display incorporated in them. Can you share with us the initial customer response to the QD display? Also, can you share with us your latest yields on the QD display? Also, I have a question about the LCD, large panel LCD business. I think previously you mentioned that the plan is to close that business down completely during the first half. Can you confirm and give us some details of that? To answer your question of the supply side impact of these macro issues and raw material supply, first of all, yes, the supply side instability has been increasing in the case of raw materials. We are responding to this by further strengthening our existing supply chain management and also using our built-up inventory and also possibly looking into adding additional supply chains to our supply side so that there is minimum disruption in our production. When it comes to impact due to the raw material side, I don't think there's need for you to be concerned. You've also mentioned the impact of longer equipment lead time, and yes, we can confirm that equipment lead times, we're seeing longer lead times now. We're responding to this by actually extending the horizon according to which we establish and execute our investments. Basically, our investments, as we have described before, is to make the appropriate level of infrastructure and advance new technology investments, in response to mid to long-term demand, but keep our equipment investments flexibly in line with the industry situation. To answer your question about the QD display. The QD display, which is our next generation large size display business, was launched as a 34-inch monitor in March, and also in the form of a 55-inch and 65-inch TV product in April. It received very positive reviews and responses in terms of picture quality, including a color luminescence and wider viewing angle in the case of the TV. It also was referred to as one of the most exciting products to look forward to this year. Also in the form of a monitor, the QD display delivers excellent picture quality and response speed and is considered to have set a new standard for gaming monitors. With such positive response, we were also able to quickly resolve the production yield issues, and we're quickly removing the supply constraints that we were under, and we think that the QD display will become the game changer in the large size, high-end segment. Now that said, the QD display market and demand for it is also subject to various external factors and is also part of the overall supply chain management situation. While we are preparing the QD display business, we're carefully watching the market environment. You've also asked about the LCD, large size LCD business, and, as we bring online the QD display business, we will be closing down the LCD business as originally scheduled. To just recap, it was in 2004 that we were the first to operate a 7th generation LCD line to open the era of large size flat panel displays. We continued with continuous technology innovation to deliver new consumer experience and also enhance the value add in the overall display industry. Even though we'll be closing down the LCD business, the business capabilities that we have built during that experience stays with us, and we will leverage that to make the QD display another success story in the overall display industry. Also, with the QD display, we will place emphasis on IP protection and technology differentiation. Now finally, we will answer questions that were submitted online in advance. We have been accepting questions via our web page in advance of an earnings release as part of our efforts to strengthen communication with individual investors and to enhance understanding of the company. A variety of questions were submitted this quarter as well. I believe a majority of these questions were sufficiently answered during the Q&A session. We will answer two more questions on topics that garnered a high level of attention, interest from our shareholders, but were not addressed during the Q&A session. Now the first question is that Samsung Electronics is maintaining its leadership in memory technology, but there are opinions that the gap with other competitors in terms of technology and cost efficiency is narrowing. Now, against this backdrop, what kind of strategies does the company have to sustain its lead in memory? This will be answered by EVP JinMan Han, representing the Memory side. Well, first of all, thank you for that question. I would like to say that when the level of technology becomes more difficult and suppliers overall are converging towards a higher technology level, it's only natural that the gap in terms of us and the competitors in technology and cost appear to decrease. However, I can confirm that we are maintaining leadership as a leader in the industry despite this competitive environment. A good example would be DRAM and our adoption of EUV. With EUV in DRAM, we were able to preempt the inflection point in technology. Of course, this preemptiveness in technology innovation does involve its set of challenges, but we believe that this is the right approach, to deliver us not only our own competitiveness, but also to contribute to the development of the overall IT industry. 추가적으로 설명을 드리자면, 저희는 기존 시장을 벗어난 새로운 시장, 그리고 다양한 사업 모델을 연구 중입니다. 이런 과정에서 DRAM과 NAND 모두 솔루션 제품에 대한 시장과 고객의 요구에 저희가 선도적으로 대응하고 있고요. 또 예를 든다면 DRAM 같은 경우는 최근에 AI 시대를 이끌 것이라고 기대되는 CXL이 차세대 메모리 솔루션으로 주목받고 있고요. 저희는 이 CXL은 메모리 하드웨어뿐만이 아니고 소프트웨어 솔루션까지 선보이고 있습니다. 그리고 또 이 CXL을 위한 컨소시엄을 통해서 기술 저변도 확대하고 있습니다. I would also like to share with you that, we're also looking into developing new markets and also new business models. For example, for both DRAM and NAND, there is greater market and customer demand for solution-based products, and we are one of the leaders in providing DRAM and NAND-based solution products. For example, in the case of DRAM, CXL is actually attracting quite a lot of attention as the next generation memory solution, especially, with future AI-related needs. We have introduced not only CXL memory hardware but also software solutions, and we're also expanding the overall technology infrastructure in CXL through formats such as the CXL Consortium. NAND 말씀드리자면, NAND는 이 컨트롤러하고 소프트웨어가 결합된 SSD 그리고 모바일용 스토리지 이런 솔루션 제품의 경쟁력이 진짜 중요해지고 있고요. 저희가 이런 제품들이 가진 압도적인 경쟁력을 바탕으로 해서 시장의 니즈에 부합하는 고부가가치 제품을 공급 중입니다. 저희는 향후에도 이 파트너 기업들하고의 협력을 강화해서 이러한 시장 리더십을 계속 제고해 나갈 예정이고요. 앞으로도 삼성전자에 지속적으로 믿음 가져주시고, 또 이와 같은 가감 없는 조언 부탁드리겠습니다. 감사합니다. The same goes for NAND. For example, in the NANDs, the solution product competitiveness is becoming quite critical. Examples of a NAND-based solution product would be SSD, which combines the controller and software, as well as mobile storage. Based on our overwhelming competitiveness, we have continued to supply high-value-added products that meet the market needs. In addition to that, we will continue to focus on collaboration with a wide range of partner companies, which will further strengthen our market leadership. I appreciate your question and would also like to ask that you continue to give us your trust and also frank feedback going forward. 네, 답변 감사합니다. 온라인 두 번째 질문은 최근 성장세를 나타났던 태블릿 시장이 올해는 역성장한다는 전망이 있는 것 같은데 라인업, 가격 등 당사 대응 전략에 대해 문의드립니다이며, 이에 대해 Mobile Experience의 김성구 상무가 답변해 주시겠습니다. The next question is the following: There are projections that the tablet market, which has been on a growth trajectory recently, will be contracting this year. Does the company have any strategies to address the issue in terms of lineup or pricing? This will be answered by VP Sung-Koo Kim of Mobile Experience. 시장 부분부터 말씀드리면, 태블릿 시장은 2020년부터 2021년까지 COVID-19 상황하에서 비대면 수요가 늘면서 크게 성장했습니다. 올해는 시장이 기저 효과 때문에 소폭 감소할 거로 전망은 되지만, 재택근무와 원격학습 트렌드가 일상의 일부로 자리 잡아 가고 있기 때문에 대화면 프리미엄 태블릿에 대한 고객 수요는 높은 수준으로 지속될 것으로 예상합니다. Yes. To answer your question, as you've mentioned, the demand for tablets have grown quite a lot across 2020 and 2021 with COVID-19 and more people working and studying from home. Compared to the previous years, the overall tablet market is expected to slightly decrease. Given the fact that working or studying from home is becoming a part of our everyday lives, we think that even with the overall market slight decrease, the demand for large size and premium spec tablets will maintain at high levels. 저희는 그 대화면 트렌드에 부합하는 태블릿 최초 Ultra 모델, Galaxy Tab S8 Ultra를 출시했고 프리미엄 제품 라인업을 강화하고 있습니다. Tab S8 시리즈 판매 호조를 이어가서 그 프리미엄 태블릿 매출을 성장시키고 사업부의 이익에 기여하겠습니다. 그리고 지난 언팩에서 Tab S8 Ultra를 그 S22 시리즈와 동시에 선보여서 그 소비자들의 주목을 이끌어낼 만큼 소비자들에게 Galaxy ecosystem 내에서 Galaxy Tab과 Phone, PC, Buds와의 그 편리한 연결 경험을 효과적으로 마케팅하고 알려서 태블릿과 Galaxy ecosystem 사업 모멘텀을 이어가도록 하겠습니다. We launched the Galaxy Tab S8 Ultra, which was the first Ultra model for the tablet and is quite in line with this trend of larger size, even in the tablet market. We're overall strengthening our premium product lineup for tablets. We will continue to record positive sales for the Tab S8 series and grow the premium tablet revenue to contribute more to our overall business profits. Also, during the most recent Unpacked, we actually unveiled the Tab S8 Ultra together with the S22, and that was very effective in attracting consumer attention. We will continue to place our marketing focus on highlighting the convenient connectivity experience across the overall Galaxy ecosystem that encompasses, for example, the Galaxy Tab, our smartphones, laptops, and Buds, in order to drive the momentum behind our tablet and Galaxy ecosystem business. 네, 답변 감사합니다. 제한된 시간 관계상 부득이하게 투자자들께서 남겨주신 질문에 대해 전부 답변드리지 못했지만, 소중한 의견 감사드리며 주요 경영 의사결정에 참고하도록 하겠습니다. 그럼 이것으로 이번 분기 컨퍼런스 콜을 마치도록 하겠습니다. 여러분과 가족들의 건강과 안전을 기원합니다. 감사합니다. Due to time constraints, we're unfortunately unable to answer every question. However, I would like to thank everybody who shared their opinion, providing us with valuable information that we will refer to in our decision-making process. That completes our conference call for this quarter. We wish all of you and those close to you stay strong and in good health. Thank you very much.