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Alphane_Moon@lemmy.world

Samsung posts brutal financials as chip business profits plunge by 94% (www.techspot.com)

submitted 1 day ago by Alphane_Moon@lemmy.world to c/hardware@lemmy.world

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[–] Alphane_Moon@lemmy.world 6 points 1 day ago* (last edited 1 day ago) (1 children)

I don't have professional experience in semiconductor contracts, but it seems unlikely that an upfront payment format would be used; I would assume payments (i.e. revenue and profit) would be tied to quarterly unit delivery figures (more in Q3/Q3 to cover season demand peak).

Perhaps this is tied to intra-company transactions (decline in Exynos fab orders?); but I would still think Switch 2 SoC should have a positive impact on current profit. They didn't just sign a contract on near break even terms, did they? :)

[–] Die4Ever@retrolemmy.com 5 points 1 day ago* (last edited 1 day ago) (1 children)

I was thinking it may be a mix of both, an upfront contract last year, and continual payments

[–] Alphane_Moon@lemmy.world 3 points 1 day ago

Unless someone with experience in such contracts is using Lemmy (and reading this community), we can only speculate. :)