Good morning, and good evening. Thank you all for joining this conference call. Now we will begin the conference call of fiscal year 2023, 2Q earnings results by Samsung Electronics. This conference will start with the presentation, followed by a dividend Q&A session. If you have a question, please press star one, star and one during the Q&A. For cancellation, please press star two on your phone. Now, we shall commence the presentation on the fiscal year 2023, 2Q earnings results by Samsung Electronics. Welcome, everyone. This is Ben Suh, Head of Investor Relations. Thank you for joining Samsung Electronics' second quarter 2023 earnings call. Really different from those expressed in today's discussion. I will start with our results for the second quarter of 2023. Although we delivered a slight recovery in revenue for the DS Division in the second quarter, consolidated revenue declined 5.9% sequentially to KRW 60 trillion, mainly due to a decreased smartphone shipment number. Consolidated gross profit increased to KRW 18.4 trillion, up KRW 0.6 trillion, quarter-on-quarter, increased sequentially, rising 2.8 percentage points to 30.6%. SG&A expenses increased by KRW 0.6 trillion, quarter-on-quarter to KRW 17.7 trillion, this for the future, even amid a very challenging business environment. Operating profit increased slightly, quarter-on-quarter to KRW 0.7 trillion, despite a decline in smartphone shipments, mainly as DS narrowed it. We improved our results quarter-on-quarter, as our preparations for robust demand for AI-centric products, such as HBM and DDR5, led to higher than guided DRAM shipments. Our system semiconductor business due to sluggish demand from main applications. For display, the mobile panel business reported similar profits sequentially, even in the seasonally weak second quarter, thanks to solid sales centering on expanding QD-OLED presence in the premium market. Despite continuing overall weak demand, the DX Division achieved strong profitability, mainly due to increased sales of premium TVs and digital appliances business, improved its profitability amid strong seasonality, mainly attributable to increased sales of premium products and lower costs, including shipping. HARMAN reported growth in both revenue and profits, bolstered by consumer audio demand, which centered on portable and TWS products, and via cost management throughout the businesses. HARMAN also continued to solidify its foundation for strong growth by winning the largest automotive order ever in its history. In terms of currency, the Korean won showed weakness against the US dollar, the euro, and major emerging currencies in the second quarter. This resulted in an effective gain in operating profit compared to the previous quarter in both the component and the finished product businesses. I would like to share our business outlooks for the second half of the year. We expect global IT demand, especially in our component businesses. However, challenges associated with a demand recovery are also likely to persist due to macro risks and other factors. For the DS Division, amid completeness of the Gate-All-Around process in foundry. We do need to monitor the possibility of continued customer inventory adjusting products, featuring energy savings mode under SmartThings. We expect HARMAN to post improved profitability on the back of expanding sales of consumer audio products during strong seasonality for materials and shipping. Moving on to capital expenditures. CapEx in the second quarter was KRW 14.5 trillion, with KRW 13.5 trillion invested in the DS Division, and KRW 2 trillion invested in the DS Division, and KRW 0.9 trillion in display. Similar to the previous quarter, memory CapEx concentrated on facilities in Pyeongtaek, which included completing Pyeongtaek supply, and also on equipment to prepare for advanced node demand. We continued our R&D and back-end investments to further bolster future competitiveness. Foundry investments continue nodes, while display investments remain focused on infrastructure and module production enhancements. Next, I would like to address the second quarter dividend. Today, the board of directors approved a quarterly dividend of KRW 361 per share for both common and preferred stocks. Based on the annual dividend payout under the current dividend policy, the total quarterly payout is 2.45 from our sustainability report 2023, which was released in June. Regarding the environment, the DX Division completed its transition to 100% renewable energy at all DX in Brazil. We also increased our use of plastic with recycled resins by 3x to reinforce resource circularity. ... In the DS Division, we continually increased the number of gases. Through these efforts, we lowered our greenhouse gas emissions by 10.16 billion tons, and on a corporate level, reached a renewable energy transition rate of 31%. An assessment of human rights management at global companies is measured by the World Benchmarking Alliance, a global alliance for sustainability. For more details, please refer to the Sustainability Report 2023. I will now turn the conference call over to the representatives from each business unit to present second quarter performances and outlooks for their respective business segments in more detail. We will start with EVP, Jaejune Kim of the- The memory demand in the second quarter showed somewhat different aspect for each application. For servers, due to strong demand for generative AI, investment from data center area was concentrated on AI servers in limited CapEx. As a result, our demand for general servers and storage was relatively limited, that our supply because for server exceeded that of the industry. Thanks to our overall sales expansion and active response to rising demand for DDR5 and HBM, for generative AI from cutting-edge node, we actively responded to the demand, for especially for a flagship smartphone, with our competitiveness in UFS 4.0. In addition, considering increasing production costs in the industry, while inventory orders by customers are likely to wind down. Especially in mobile and PC applications, with the normalization of major customer set inventory levels, set build demand is expected to improve due to the launch of a new smartphone and a PC promotion in the second half of the year. In addition to this, for memory, we expect to see a continuation of the trend toward high density based on price elasticity. In server application, although customer inventory adjustment began relatively late compared to mobile and PC, inventories are likely to become increasingly depleted in the second half of the year. Therefore, we expect server demand to recover gradually, and a by-product, a demand for DDR4 product as well as DDR5, is also expected to gradually improve compared to the first half of the year. In addition, we are expanding our applications in the security business into fingerprint authentication cards and in the power business to battery management system, or while almost we are rebounding demand for parts such as SOC and DDIs, driven by peak IT seasonality. As inventory adjustment by customers are coming to an end. Also, for mobile resources, we are seeking to resume supplying major customers by securing other orders for project in 2026 from OEMs in Europe. Thank you. Good morning and good evening. This is an ongoing inventory adjustment made by our customers, which subsequently weakened the demand for major applications, such as mobile and PC products among end users. Gross margin faced significant challenges, mainly reflecting lower capacity utilization due to fab expansion and anticipated uncertainties in short-term demand. To manage profitability in 2023, we will prioritize cost improvement efforts, while consistently highlighting the value of our products and services. Despite near-term inventory cycle, the current increase in AI-related demand is driving the greater intensity, primarily due to geopolitical risks, slower than expected demand recovery, and ongoing customer inventory adjustments. We anticipate a gradual improvement in demand, and customers complete inventory adjustments at a healthier and more sustainable level. To establish a solid foundation for growth, we will focus on advancing the development of our GAA technology. We're committed to expanding our product portfolio by continually developing mature processes like 8nm eMRAM, as well as 8-inch technologies tailored for or from the foundry business unit. Thank you. Good morning, I'm Casey Choi from the Corporate Strategy team at Samsung Display. I will now brief you on our results for the second quarter of 2023. Amid high inflation and economic downturn, market conditions in the second quarter remained unfavorable across the board, including for the display industry. For the mobile display business, despite a decline in market demand for smartphones, our strategic customers achieved stable results in the premium product segment. We maintained our market share and generated similar results quarter-on-quarter by supplying OLED panels equipped with differentiated performance and technology. For the larger display business, we improved our business fundamentals by continuing to enhance yield and productivity. With a focus on high value-added products, centering on those for ultra large 77-inch TVs, we have been solidifying the premium status of our QD-OLED lineup. Next, I will share our outlook and strategy for the second half. For the smartphone market, with new product release from several customers' lineup, and we expect our earnings to improve compared to the first half. Notably, we'll use our accumulative technology and know-hows in not only foldables, but also our other new functions, such as whole display and Hybrid Oxide Polysilicon, and leverage our technical completeness to stay ahead of our competitors, and seamlessly accommodate the mass production of our customers' new products in a timely manner. In the TV market, there is uncertainty over demand due to the sluggish economy and effects of the shift to the end endemic. We'll collaborate with our customers to boost sales of ultra large TVs, which are. Hi, everyone. This is Daniel Araujo from the Mobile eXperience Division. I'd like to share our results for 2023 Q2 in the premium market. market research institutes have been lowering their forecasts for market growth, and there is potential for additional cuts as they reflect risks of a further prolonged global economic downturn. Regarding tablets selling, we are striving to successfully launch the Galaxy Z Flip5 and Galaxy Z Fold5, which feature even more refined and differentiated user experiences that are specifically tailored to their form factors. With stable inventory management and close collaboration with our partners, we'll boost sales right from launch to further fortify our leadership in the global foldable smartphone market. For the S23 Series, we will extend sales in the second half and improve customer retention by closely collaborating with our partners and actively implementing sales programs tailored to customers in each region. In tablets and wearables, while focusing on boosting sales, centering on our new high-end models, we'll strengthen our product competitiveness and the premium ecosystem experience, and expand sales through efforts such as the joint Unpacked event, thus enhancing our position in the premium segment. Through this, we aim to grow annual revenue in 2023, as we strive to secure solid double-digit profitability by 2023. TV market demand contracted quarter-on-quarter, mainly due to seasonality. On a year-on-year basis, the trend of demand decline has been lessened due to the base effect of several issue last year, including the Russia-Ukraine conflict outbreak. For Samsung, we improved our profitability year-on-year by focusing on sales of high value-added products, enhance our leadership in the premium market, and by reducing overall costs, including those involving material and logistics. Now, let me go over the outlook for the second half, 2023. In the second half, we expect seasonal strength to lessen the decrease in overall TV demand amid various business environment uncertainties and risks. The premium super big TV market is likely to remain robust. Samsung will capture the upcoming peak season demand by strengthening sales program, mainly focusing on screen, and continue to lead the premium market by leveraging innovative products, such as 98-inch super big TV, MICRO LED, and the world first large-sized gaming monitor, featuring that are highly valued by our consumer, such as environment, security, and content. Thank you. Thank you. That sums up the second quarter results presentations in some key business areas. Considering the continuing macro uncertainties, we will not be providing annual guidance at this time. Comparative figures are on a sequential basis for quarterly data, and as an added clarification, not to literally 13-19 range. For DRAM, in the second quarter, our bit growth increased by a percentage in the mid-teens, and ASP declined by a mid to high single. For NAND, our bit growth in the second quarter increased by a mid-single digit percentage, while ASP fell by a percentage in the mid to high single digit range. For the third quarter, we expect market and range, and small panel sales volume grew by a percentage in the low single digits. For MX, in the April quarter, sales volumes of smartphones and tablets were approximately 53 million units and 6 million units, respectively, and smartphone ASP was $269. ... In the third quarter, we expect shipments of smartphones and tablets to increase. Smartphone ASP sales volume decreased by a percentage just into the double digits. For the third quarter, we expect it to grow by a percentage in the high single digits. Now I will 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 star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed star and number one. For cancellation, please press star two, that is star and two on your phone. The first question will be presented by Dongwon Kim from KB Securities. Please go ahead with your question. Yes. Outlook. Second question is a display question. currently you are pursuing an ITC litigation in order to protect your display OLED related technology IP and also enhance your competitiveness. Can you give us an update on that ITC case and whether there's a possibility of that expanding? memory. To answer your question, first of all, if you look back in the first half, there was definitely a price decline during the first half. This was driven to the heightened macro uncertainty and also customers going through inventory adjustment in order to secure their financial health. That said, I think during first half we definitely saw a leveling off of the price decline in terms of both pace and magnitude in second quarter versus first quarter, as customers have made significant progress in their inventory adjustments. Regarding. Second half outlook, we think that in the second half, we think that there would be some market changes happening during the second half. To. To give you a bit more detail, in the case of DRAM, we think that there will be an increase in demand for products that use special processes such as TSV or HKMG. On the other hand, the capacity of these products are rather limited, and so these products could lead the market price rebound earlier than other products. Compared to DRAM, we think that the market change in NAND will probably come later. With the competition in OLED market becoming more intense, there has been an increase in the unauthorized use as well as infringement of our IP, which is the fundamentals of our competitiveness. Such infringement activity has gone beyond what we could tolerate. Therefore, the company has been looking into various ways, including legal measures. Patent infringement is not just an issue in terms of harming the competitiveness of an individual company. Patent infringement undermines the rules of competition and eventually the entire industry ecosystem. Therefore, going forward, we will continue to do our best as the leader of the OLED industry to not only develop technology, but also protect our technology and intellectual property, and also build a healthy and fair industry ecosystem. Now, regarding the ITC case that you've asked about, because that is a case that is still undergoing, we are not able to provide you with any specific comments. The next question will be presented by Sung Kyu Kim from Daiwa Securities. Please go ahead with your question. Yeah. As we unveiled. At Unpacked yesterday, the Galaxy Z Flip5 has a slimmer, more refined design with a larger cover screen and an enhanced user experience that's optimized to the form factor as a whole. For example, using the cover screen, users can take high definition selfies using the rear camera from any angle they want, and they can use the Flex Window to express their individuality, as well as to take care of a variety of tasks quickly and conveniently. As for. The Galaxy Z Fold5, we made it thinner and lighter than its predecessor with the application of the Flex Hinge. We also equipped it with a high performance AP, along with better heat dissipation and optimized software to further enhance the gaming experience. In addition, we improved the multitasking functionality that many of our Fold users take advantage of, and also productivity functions via the slimmer S Pen. As we. Continue to refine these products, we're also enhancing our marketing and sales strategies to firm up our leadership in the global foldable market. Yesterday's Unpacked was held for the first time in Seoul, a city that's not only rich in history and tradition, but also at the forefront of global trends and innovations. Through this event, we intend to keep creating buzz by providing more in-depth product information and experiences to global media and tech influencers. We're also strengthening our market collaborations with partners, one of our strengths, to help boost sales right from the launch. By branding our differentiated Galaxy foldable experience as Flex, we aim to improve our position as an aspirational brand. foreign language. The next question will be presented by Peter Lee from Citigroup. Please go ahead with your question. foreign language. To answer. Your first question about HBM, as you mentioned, with the growth of the generative AI market, then we are expecting there to be a rapid increase in demand for high performance memory that can support large scale data processing, especially HBM. HBM foreign language. The next generation will be HBM3, in HBM3, we're currently undergoing customer qualifications with the industry top performance and density or capacity. We have already started shipment of 8 layer 16 GB and 12 layer 24 GB products to key AI SOC companies and cloud companies. Foreign language. The subsequent generation will be HBM3E. We're planning to launch that product in the second half based on 24 Gb. We are preparing this to be, once again, industry's best performance and capacity in order to actively capture the increasing AI market demand. Foreign language. To give you a bit more detail about our HBM supply capabilities, as a major supplier within the HBM market, we have been continuously investing in our production capabilities and have been maintaining one of the top industry HBM production capabilities. Based on that, we have already booked around 1 billion or mid-billion gigabit level of customer demand, which is around 2x what we had last year. To prepare for additional order bookings happening throughout the second half, we are in the process of further increasing our supply capabilities through productivity enhancements. Foreign language. For that, we are planning to further increase our production and supply capacity. Currently, we're in the process of investing in additional HBM capacity in 2024. By 2024. Foreign language. We are the leader in HBM, and we will continue to maintain the industry leadership by maintaining not only the industry's top level technology, but also in securing timely supply of HBM products in line with the upcoming surge of HBM demand. Foundry foreign language. Well, to answer your question about the foundry side, with the rapid emergence of generative AI, we're expecting there to be GPU and AI accelerators, at least for the next five years. Even AI chip, parallel processing chip, high performance, energy efficiency, very important. GAA GAA process, high performance, energy efficiency, AI chip, optimized advanced node, for delivering the high performance and energy efficiency needed for an AI chip. We plan to maintain the leadership in AI chip market, through a technology leadership by achieving 2nm GAA process mass production in 2025. Now, these AI chips, especially the parallel processing chips that you mentioned, the critical in these parallel processing chips is high performance and energy efficiency. Actually, the GAA process, where we were able to go into mass production for the first in the world last year, is the optimized advanced node, for delivering the high performance and energy efficiency needed for an AI chip. We plan to maintain the leadership in AI chip market, through a technology leadership by achieving 2 nano GAA process mass production in 2025. AI chip, HBM memory, packaging advanced packaging technology, capacity, foundry, memory, packaging, GAA. The next question will be presented by Jeong Jun Park from JP Morgan. Please go ahead with your question. Yeah, HBM back end NCF MR NCF micro bump. Micro bump is used to connect the TSV of the. Inaudible. Now, in terms of performance, because the HBM operates at high speed, it is important to reduce the gap between chips so that heat dissipation performance can be improved during operation. NCF, because it is a void-less processing technology, is very effective in reducing that inter-chip gap. Based on this technology, in the case of our HBM3 12 stack product, we have been applying, first in the world, a 7 micro technology that has advantages in terms of reducing chip gap and also improving the thermal characteristics. NCF solder. Also, the NCF process has advantages in terms of productivity because the NCF process actually inherently includes a process and function of removing the oxidation layer on the surface of the solder, which is the bonding material. Therefore, we do not need to go through an additional separate process, such as cleaning or heating, that will be required to separately remove an oxidation layer from the solder that is created during bonding. Also, we have designed an optimized process from the soldering and bonding process, and that's why we are able to achieve competitive productivity even with an eight-stack product. HBM. ... Even going forward, the NCF technology, we expect will give us a competitive advantage even in the 12 stack HBM product, which will probably be adopted wider as we go into 2024. When the number of stacks increase, the chips, each chip becomes thinner, which makes it more susceptible to chip bending, which may lead to various technical issues. In the case of our NCF technology, because the heat and pressure is applied on the entire surface of the chip during the bonding process, we are able to relatively more easily control the chip bending, and we think that therefore, the NCF technology that we'll have, the competitiveness of it will become even more noticeable as we move up to the 12 stack product. To go further down our HBM product roadmap, there would be the HBM4 16-stack, ultra-high density product. In that case, the thickness, barrier has to be overcome, and in that case, we're currently in the process of developing a new process that would actually directly bond chip to chip and would, actually remove any gaps between chips in order to address this height restriction. by developing such core and fundamental technology, we are preparing to capture future market demand, and we will continue to strengthen our leadership as the HBM leader by continuously adding on such new technology. Yeah, display one. I think the second question was, which was about our eMagin acquisition. As you mentioned, it was last May that we signed the contract to acquire eMagin, which is a US microdisplay company at around KRW 290 billion. Currently, we're in the follow-up process, for example, going through the merger approvals with various country authorities, and we expect to completely close the deal and acquisition process by around October this year. The key purpose of this acquisition is to enhance our technology preparedness for the XR device market. The XR device ecosystem has picked up activity, especially most recently. Some are saying that once the XR devices become widely penetrated, it would bring fundamental change to the way people live beyond what had happened by the smartphone. To give you a bit more information about the company, eMagin. eMagin is a US company that has been developing micro displays from around 2001. As you know, micro display is one of the key components in an XR device. Also eMagin has the basic and core technology patents and processing technologies that are necessary for manufacturing ultra-high resolution OLED on silicon or OLEDOS. Actually, the company has organized a dedicated development team since last year. We organized a development team since last year to look into the development of various micro display technology such as OLEDOS or LEDOS. The eMagin acquisition has been achieved as a part of that activity. We think that the eMagin acquisition will help enhance our XR business competitiveness and provide micro display solutions, innovative solutions to a wider range of customers. Going forward, we will continue to sense out various technologies that were necessary to secure our leadership in future technology and give us a differentiating competitive edge, and we'll continue to make investments as well as partnerships as necessary. 답변 감사합니다. 다음 질문 받겠습니다. 다음으로 질문해 주실 분은 한국투자증권의 민숙 최 님입니다. The next question will be presented by 민숙 최 from Korea Investment & Securities. Please go ahead with your question. 네, 안녕하세요. 질문 기회 주셔서 감사합니다. 저는 메모리 관련해서 오토모티브 시장에 대해 질문 드리려고 하는데요. 오토모티브 시장이 메모리 내에서 지금까지는 수량도 작고, 품질은 좀 까다로워서 다소 중요성이 떨어진 경향이 있었는데, 자율주행 등과 더불어 최근에는 과거와 달리 중요도가 높아지고 있는 것 같습니다. 향후 오토모티브와 메모리 시장 전망을 어떻게 보시는지와 이에 대한 삼성전자의 준비 상황에 대해 업데이트 해주시면 감사하겠습니다. My question is about automotive memory. I think within the larger memory market, the automotive application had accounted for a small quantity. Also, however, it required very high quality, and therefore, compared to other applications within the memory market, it had received less importance up till now. With especially the emergence of autonomous driving, I think even from the memory industry's perspective, automotive is becoming a more and more important application. With that background, can you give us your outlook on the automotive memory market and how you are preparing to capture that? Uh, 네, 오- 오토모티브 메모리 시장 관련 답변 드리겠습니다. Uh, 전기차와, uh, 자율주행차 시대가 도래함에 따라서, uh, 차량용 메모리 수요도, uh, 강세를 보이고 있습니다. Uh, 오토 메모리 시장은 금액 기준으로 향후 오 년간, uh, 매우, 매년 평균, uh, 삼십 프로 중후반의 성장을 보일 것으로 예상됩니다. To answer your question about automotive memory, yes, as you mentioned, with the advent of EV and autonomous driving, the demand for automobile memory has been very strong. I think there are projections that say that the automotive memory market, in terms of value, would grow in, on average, a mid to high 30% range for the next five years. 실제, 오토모티브향 메모리 수요는 빠르게 증가하여 2030년 초에는 PC 응용보다도 더 큰 사업 기회가 될 것으로 보여, 당사는 관련된 사업 경쟁력을 지속 강화해 나가고 있습니다. In fact, automotive memory demand is expected to grow quite rapidly. At this pace, it would actually be larger as a business opportunity than the PC application by early 2030. Therefore, we're also strengthening our business competitiveness related with automotive memory demand. Uh, 특히, uh, 차량, 사람의 생명과도 직결되는 만큼, uh, 오토모티브 제품의 신뢰도와, uh, 안정성 확보에, uh, 집중하고 있습니다. Uh, 그 결과, uh, 당사 오토모티브 UFS 3.1 제품에 대해, uh, 지난 이십삼년 사월, uh, 독일의 메이저 티어 원 고객사로부터, uh, ASPICE CL2, uh, 프로세스 및, uh, 제품, uh, 인증을, uh, 국내 업체로, uh, 업체 최초로 받았고, uh, 유월 말에는 전 세계적으로 공신력을 가진 자동차 인증기관인, uh, CMBC사를 통해, uh, 실제 고객사에 공급하고 있는 제품으로 다시 한 번 인증을 획득하였습니다. The vehicle has a direct impact implication on human lives, and that's why when it comes to automotive application products, reliability and stability is most important. Under that policy, we were the first among Korean companies to receive the ASPICE CL2 process and product certification from a major German Tier-one customer in April 2020-2023, using our automotive UFS 3.1 product. Also, in late June, we actually received certification, using a product that we're actually supplying to a customer, from CMBC Corporation, which is a globally recognized automotive certification body. 이는 당사 Automotive UFS 3.1 제품이, 고객사와, 인증기관, 둘 다 해서, full feature에 대한 인증을 확보한 것입니다. ASPICE는, 차량용 소프트웨어 개발 프로세스의 신뢰도와, 역량을 평가하는 개발 표준으로, 당사 전장향 메모리 제품은, 금번 CL2 인증을 통해서 차량용 반도체 시장에서 요구하는, 높은 수준의 안정성과 품질 수준을 국제적으로 검증 및 공인받았다고 할 수 있습니다. To sum the two up, our automotive UFS 3.1 product has received full feature certification from not only the customer, but also from a third-party certification body. ASPICE is a development standard that assesses the reliability and capability of automotive software development process. Our automotive memory product has received a CL2 certification under ASPICE, and that shows that we have been internationally tested and recognized for the high level of stability and quality that is required by the automotive semiconductor market. 이와 더불어, 당사는 오토모티브 메모리의 소비 전력 개선 측면에서도 지속적인 기술 개발을 진행하고 있습니다. 이달 초 양산을 시작한 인포테인먼트향 UFS 3.1은 업계 최저 수준의 소비 전력을 갖고 있어 자동차의 배터리 전력 운영 효율을 높일 수 있기에 전기차, 자율주행차 등에 최적의 메모리 솔루션이 될 것으로 기대합니다. Another focus of our automotive memory technology development is power efficiency. For example, the infotainment application focused UFS 3.1, which we started mass production earlier this month, has one of the lowest power consumption in the industry. That would help enhance the power operation efficiency of the EV's battery. We think that this can be used to create the optimal memory solution for EVs or autonomous vehicles. Uh, In addition to preparing one of the industry's best full automotive lineup that supports the differentiated needs of the automotive market, such as product stability, reliability, and power consumption, we also have a very strong relationship with key automotive customers that have been built up during the past eight years, which was when we first started our automotive business, and during that period, we have not had a single supply issue. We have a very strong relationship with our customers in terms of trust. As you know, we are present in all of the major OEMs and Tier 1 companies. Uh, Our future direction in terms of our automotive memory business, is to continue to maintain a very competitive product lineup and continue to work together with our customers to maintain our leadership. Yeah, The next question will be presented by Nicolas Gaudois from UBS. Please go ahead with your question. Good morning, and thanks for taking my question. Coming back to AI memory. As AI and cloud demand grows, there will be effectively more needs for comprehensive technical requirements in memory products beyond just HBM. We already talked about quite a bit. On your side, what are the efforts you're currently making to actually prepare for this longer term industry trend in the future? How what are the key technology avenues will basically seek to get ready to effectively monetize this significant opportunity? Thank you. Yes, as you mentioned, with the recent growth in cloud and AI, we are actually seeing a rapid shift and change in the market demand, what they require from memory, from various applications, including servers and graphic applications. As the memory industry leader, we are actually securing various future technologies on multiple avenues to meet market demand. Uh, To give you a bit more details, I think the first one we can introduce is the 32 Gb DDR5 product that we're planning to launch. This will address the high density module demand that's necessary for data center AI. The high core CPUs that are used for the high performance computing for AI, actually needs larger memory capacity and bandwidth versus existing CPUs. In this process, for the sake of optimizing the speed, rather than using multiple DRAM modules on one channel, it's much more advantageous and effective to use a single large density module per channel. That's why recently there's been an upsurge in market need for high density modules. We are planning currently to launch the 32 Gb DDR5 product within this year based on our advanced node process. This can be incorporated into a high density module to address the rapidly increasing high performance computing demand. ... Uh, 다음으로, uh, 당사는, uh, GDDR, 그래픽 DDR에서도, uh, 업계 최고 수준의 제품을 지속 확보해 나가고 있습니다. Uh, 당사는 얼마 전 업계 최초로 최고 성능의, 에, 삼십이 기가 비, 비, bps의 GDDR7을 개발하였는데요. Uh, GDDR7은, uh, 전 세대인 GDDR6 대비, uh, 데이터 속도가, uh, 일 점 사 배 빠르고, uh, 전력 효율은, uh, 이십 프로 향상, 향상된 제품입니다. Uh, 이러한 성능을 기반으로, uh, 저희는 GDDR7이, 아, PC와 게이밍 응용뿐만 아니라, uh, 고성능 컴퓨, 컴퓨팅과 AI 등에 폭넓게 사용될 것으로 기대하고 있습니다. The next to highlight is our graphic DDR, the GDDR. We are continuing to maintain industry leadership in GDDR as well. Recently, we developed the GDDR7 with 32 gigabps, which is the industry's top performance. Versus the previous generation, which is a GDDR6, the GDDR7 offers 1.4x faster data speed with 20% improved power performance. Based on these improved performance, we believe that the GDDR7 can be used not only for PC or gaming applications, but widely in high performance computing and AI. 한편, 온디바이스 AI 등에 특화된 LLW Low Latency Wide IO DRAM도 개발하고 있습니다. generative AI는 현재 주로 서버 기반으로 발전하고 있지만, 효율성과 보안 등의 이유로 AI를 기기 자체에서 구현하는 온디바이스 AI 기술 또한 확대 중입니다. Another product to introduce would be the LLW, which is Low Latency Wide IO DRAM, which would be specialized for the on-device AI. Currently, even though generative AI is mainly designed around the server infrastructure, for efficiency as well as security reasons, there is also a movement to develop on-device AI technology that would implement AI on the device itself. LLW는 저지연 저전력 특성과 함께 기존 LPDDR 대비 월등히 높은 고대역폭을 가지고 있어 기기에서 생성되는 데이터를 실시간으로 처리할 수 있습니다. 이에 당사는 온디바이스 AI 시장 성장과 연계해 업계 주요 파트너들과 지속 협업하며 제품 개발 중으로 2024년 말 양산을 목표로 하고 있습니다. LLW not only has low latency and a low power characteristics, but also has a significantly wider bandwidth versus the existing LPDDR, and is capable of real-time processing the data that is generated on device. We're currently working with the on-device AI market, working together with various key partners, in developing our product with the target mass production of late 2024. Uh, 또한, uh, 데이터센터향 AI에 특화된, uh, advanced 패키지 기술로, uh, 로직과 바로 결합할 수 있는, uh, DRAM 제품을 개발 준비 중입니다. Uh, 이는 SRAM보다, uh, 경제적일 뿐만 아니라, uh, 더 큰 용량을 구현할 수 있어, AI 모델 거대화와 함께 급증하는 데이터를 효과적으로 처리할 수 있습니다. Uh, 당사는, uh, 주요 CPU 고객과의 협의를 바탕으로, uh, 제품 상세 스펙에 대한 정의를 이미 완료한 상태이며, uh, 이를 기반으로, uh, 차별화된 솔루션 제공을 준비하고 있습니다. We're also currently developing advanced packaging technology, which will be specialized for data center AI. Using this advanced packaging technology, we're developing a DRAM product that can be directly integrated with the logic. This will be more economical versus an SRAM solution, and also can be used to implement higher densities, which will be effective in processing the data, which is rapidly increasing with the introduction of larger AI models. We have already talked with a major CPU customer. The detail product specifications have already been defined for the DRAM product, and based on that, we are preparing to provide a differentiated solution. 뿐만 아니라, LPDDR 기반 모듈인 LP CAM도 개발하였습니다. 그동안, 저전력의 LPDDR 제품은 주로 모바일 기기의 단품으로 쓰였는데요. 최근 주요 클라이언트 PC 및 서버 고객사 중심으로 기존 DDR 모듈이 아닌 LPDDR 모듈을 채용해 전력 소모를 줄이고자 하는 니즈가 생겨나고 있습니다. 이에 당사는 업계 최초로 LP CAM이라는 LPDDR 모듈을 개발하였고, 내년 상반기 중 시제품 양산을 시작하여 하반기 클라이언트 PC 및 서버향 저전력 수요에 대응할 계획입니다. We've also developed the LPCAMM, which is a LPDDR-based module. As you know, up till now, the low power LPDDR product was mainly used standalone on a mobile device. Recently, major client PC customers, as well as some server customers, are showing strong interest in using a LPDDR-based module instead of the existing DDR module in order to further reduce power consumption. Based on that need, we were the industry's first to develop the LPDDR module, which is called LPCAMM. We are currently planning to start pilot mass production of LPCAMM first half of next year to actively capture the low power demand that is happening in the client PC and server markets. ... 이와 더불어, 당사는, 초고대 AI 모델 처리에 적합한, HBM-PIM과, CXL 기반 PNM, 즉 Processing Near Memory 등, 메모리 반도체 솔루션에 대한, 개발 활동도 지속하고 있습니다. 이들 기술은, 메모리 내 혹은, 가까이에, 프로세서를 배치함으로써, CPU와 메모리 간 데이터 병목 현상을 개선시킬 수 있습니다. In addition to that, we're also working on developing new memory, semiconductor solutions, including the HBM, PM, PIM, Processing-in-Memory, as well as a CXL Compute Express Link-based PNM, or Processing Near Memory, that are more optimized for processing large AI models. Basically, these concepts, the technology concepts, is to position the processing either within memory or near the memory to minimize any data bottlenecking between the CPU and memory. 실제로 HBM-PIM을 적용하여 성능 개선 효과를 계산해 본 결과, 기존의 GPU 가속기 활용 대비, AI 모델의 성능이 약 3.4x 이상 향상됨을 확인하였으며, CXL 기반의 PNM 솔루션의 경우, 메모리 용량 추가를 통해, 기존 GPU 가속기 대비, 4x 용량으로 활용이 가능합니다. we have been conducting some performance benchmark tests, for example, if we use the HBM-PIM, there is a performance improvement. Compared to the existing GPU accelerator, the AI model's performance under HBM-PIM, improved by around 3.4x. Also, when a CXL-based. 수요도 증가하고 있는데요. 당사는, 미래 기술 개발 측면에서, 고용량 수요에 대응할 수 있도록, 내년 초 업계 최초 TLC 기반, 최고 용량, 최고 성능, 64 TB 서버 SSD를 출시할 예정입니다. Approach, we are planning to launch a 64 TB server SSD. This will be the highest density, highest performance TLC-based product. We're planning to launch that early next year. This will be the first in the industry in order to address the increasing demand for high density storage. 어, 지금까지, uh, 미래 기술 관련 준비 상황을 공유드렸습니다. Uh, 당사는 메모리 시장의 선도 업체로서, uh, 저희의 기술 경쟁력을, uh, 지속 강화할 뿐만 아니라, uh, 업계 전체에 새로운 기술 표준을 제시해, uh, 메모리 생태계 발전을 이끌고 있습니다. Uh, 앞으로도 당사는, uh, 미래 시장의 니즈를 적극적으로 살피고, uh, 이를 뒷받침하는 기술을 개발하여, uh, 시장 리더십을 공고히 해 나가겠습니다. 감사합니다. That was a brief introduction to some of the key future technologies that we are preparing. As the leader of the memory market, we will continue to remain focused on not only strengthening our technology competitiveness, but also leading the development of the memory ecosystem by presenting new technology standards. Going forward, we will continue to actively sense out future market needs and develop technology to back this to strengthen our market leadership. 예, 상세한 답변 감사합니다. 시간 관계상 질문 하나만 더 받도록 하겠습니다. 마지막으로 질문해 주실 분은 CGS-CIMB 증권의 이수빈 님입니다. The last question will be presented by Subin Lee from CGS-CIMB Securities. Please go ahead with your question. Yes, hello, this is Subin Lee from CGS-CIMB Securities. Thank you for the opportunity to ask a question. I have a question for the VD Division. Articles about the introduction of White OLED panels continue to be published. Could you please explain Samsung Electronics' premium product lineup operation strategy, such as OLED TV, and the outlook for the second half? My question is to the VD business. There was a media report on adoption of WOLED. With that in mind, can you give us your strategy in the premium OLED TV product lineup and your second half outlook for TVs? 예, Visual Display 답변드리겠습니다. 글로벌 TV 시장이 다소 정체된 현재 상황에서도 QLED, OLED, 초대형 등 프리미엄 제품에 대한 수요는 지속적으로 견조할 것으로 전망됩니다. 이에 당사는 프리미엄 라인업을 다변화해서 소비자에게 다양한 선택권을 제공할 예정입니다. To answer your question, even though, yes, the overall global TV market is somewhat sluggish, we think that within that overall market, the demand for premium products, such as QLED, OLED, and the super big TVs will remain solid. Our strategy and approach is to diversify our premium lineup to give consumers a wider range of choice. 이를 위해 하반기에는 당사 프리미엄 라인업의 백본인 네오 QLED의 제품 경쟁력에 대한 커뮤니케이션을 더욱 강화하고, OLED는 작년에 육십오 인치, 오십오 인치 중심으로 주요 지역에 판매하여 좋은 평가를 받았던 만큼, 올해는 팔십삼 인치, 칠십칠 인치 초대형 라인업을 추가 도입하고, 삼성 OLED만의 차별점을 계속해서 소구하겠습니다. Now, to give you a bit more detail about our second half product lineup, the Neo QLED, which is the backbone of our premium lineup, in the second half, we will focus on strengthening the communication about the product competitiveness of Neo QLED. In the case of OLED, which actually received very good responses, in sales of key areas, especially around the 65 and 55 inch last year. For OLED this year, we will additionally add the super big lineup, that's 83 and 77 inches, and continue to appeal the differentiating factors of Samsung OLED. In the case of even larger screen size segments, in the case of the 98 inch, in addition to the existing Neo QLED offering, we will be additionally adding the 8K and the QLED lineup in the 98 inch segment. For the MICRO LED, in addition to the existing 110 inch, we will be supporting that with an 89 inch offering to continuously create markets in the super large, super high-end premium TV market. At the same time, we offer the lifestyle screen product, which is a differentiating product group, and therefore we will use also this to satisfy the wide variety of consumer needs. Now finally, we will answer questions that were submitted online in advance. We have been accepting questions via our webpage in advance of an earnings release as part of our efforts to strengthen communication with individual investors and also to enhance understanding of the company. We received a wide variety of questions for this quarter. I believe that a majority of those questions were sufficiently answered during the Q&A session. We will answer one more question on a topic that garnered a high level of interest from our shareholders, but was not addressed during the Q&A session. The question is the following: Recent launches of MR devices suggest the industry believes this area is poised for growth. Does Samsung have any plans to launch related products or create an ecosystem? This question will be answered by VP Daniel Araujo, representing the Mobile eXperience. Immersive content has already expanded beyond virtual gaming into media and work. We expect it to become a mainstream technology. We see the XR market as a large new growth opportunity. We're working systematically to lay groundwork for an ecosystem that includes core hardware, software technology, R&D, and content. Uh, We're actively investing to create a high quality, innovative device and a differentiated user experience that is unique to Galaxy. To do so, we set up a dedicated organization for immersive product planning and R&D, and we're also collaborating closely with affiliate companies and other partners. In particular, this includes a mid to long term collaboration with leading partners like Google and Qualcomm. Uh, We're well aware that many companies have recently released VR-based devices, we will offer an XR device in MX's Galaxy ecosystem to provide a new and differentiated form factor experience, where consumers can spend more time communicating, working, or enjoying their leisure time. We're working to create a fully developed product and XR ecosystem. We're preparing to release a product, and it's at the point where it'll fulfill consumer expectations. Thank you. I would like to thank everyone who shared their valuable opinions, and we will be sure to refer to them in our decision making process. On that note, our conference call for this quarter comes to an end. We wish all of you and those close to you stay strong and in good health. Thank you.