Samsung Electronics To Borrow $16B From Samsung Display For Working Capital Purposes

  • Samsung Electronics Co, Ltd SSNLF plans to borrow 20 trillion won ($15.78 billion) from unit Samsung Display Co to use as operational funds.
  • Samsung plans to borrow the funds at a 4.6% interest rate until August 2025, Bloomberg reports.
  • Samsung said in January that it intends to keep its capital expenditure this year in line with 2022, when it spent $39 billion on chipmaking efforts. 
  • Samsung found that the grim market situation and weak consumer sentiment presented an opportunity to make early investments in future technology and production capacity.
  • Samsung warned that the smartphone market would shrink again in 2023 after a double-digit decline in 2022.
  • In India, Samsung reportedly began making its fold and flip smartphones and its latest Galaxy S23 flagship.
  • Samsung bagged double the number of orders for its latest Apple Inc AAPL iPhone-rival Galaxy S23 in India in 24 hours versus the previous generation of Galaxy devices on the first day.
  • Samsung increased the number of stores selling Galaxy devices and invested more in sales and marketing.
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