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Samsung sees chip profits soar

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She said Samsung today, Thursday: It expects higher chip profits in the second quarter as customers seek to secure the needed quantities amid a global shortage of semiconductors, which is likely to affect device production and mobile device profits in the same quarter.

Samsung, which recorded the highest operating profit in the first quarter in three years, said it expects memory chips to improve significantly in the second quarter, as market conditions improve on the back of strong server demand.

Profits and sales in the mobile business are likely to decline after the strong first quarter, due to supply problems for some components and lower sales of major smartphones, the company said.

The world’s largest memory chip maker has indicated that it is experiencing some disruptions in production with respect to a certain group of products and screens due to Global semiconductor shortage.

The company is trying to increase production, andThis increase is expected to be allocated to customers who need advanced chipsets, such as: Qualcomm and Nvidia, and Samsung mobile processors.

Samsung said its chip plant in Austin, Texas, resumed full production after shutdown due to the winter storm in the first quarter, causing damage between 300 and 400 billion won.

The company’s LSI Business system, which designs logical chips like mobile processors, continues to be affected by the disruption this quarter.

Samsung plans to expand its use of external factories as well as work with its factories to secure production capacity, indicating that the global shortage of chips may continue in the second half of the year.

On Wednesday, Apple warned that a chip shortage could cost it $ 4 billion in revenue in the third quarter of the fiscal year.

Samsung said: It is expected that the prices of DRAM chips, which are widely used in laptops and other computing devices, will continue to rise during the second half of this year.

For NAND chips serving the data storage market, demand for certain applications is expected to exceed supply.

The stay-at-home trend and the expansion of 5G drives devices and servers to contain more chips and process more data, with DRAM chip prices expected to rise 18 percent in the current quarter versus the first quarter.

Samsung’s forecast came as first-quarter operating profit jumped 46 percent from a year ago to 9.4 trillion won ($ 8.48 billion) in the first quarter, the highest operating profit in the first quarter since 2018.

Profits in the mobile business jumped 66 percent year-over-year to 4.4 trillion won – the highest profit in the first quarter since 2014 – led by sales of the flagship smartphone series Galaxy S21.

First-quarter net profit rose 46 percent to 7.1 trillion won, and revenue increased 18 percent to 65.4 trillion won.

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