Samsung profits soar on global chip demand

0
33

Samsung Electronics (KRX:005930) announced a surge in revenue and profit for the third quarter, helped by high demand for computer chips.


However, the South Korean technology company warned that component shortages could affect customer demand in the fourth quarter.


It added that uncertainties related to component supply disruptions and COVID-19 are likely to remain in 2022.


Samsung said revenue rose by 10% to a record 73.8trn won (GBP46bn) in the three months to September as operating profit surged by 26% to 15.82trn won, the second-highest ever.


Samsung said favourable market conditions continued in the memory market in the third quarter, while the foundry and display businesses achieved robust sales. The finished product businesses also posted solid performances.


The semiconductor businesses recorded revenue of 26.41trn won and operating profit of 10.06trn won in the third quarter, boosted by favourable prices and significant growth in server sales.


Samsung said profits in the consumer electronics division fell in the third quarter due to rising raw materials and logistics costs.


Looking to the fourth quarter, Samsund said “a longer-than-expected component supply issue may need to be monitored due to potential impacts on set builds” in its memory business, but added that it will “actively address strong fundamental demand for servers” from increased investments from technology companies.


LEAVE A REPLY

Please enter your comment!
Please enter your name here