Business & Investment

Samsung says a shortage of components affecting some chip demand, profits hit a three-year high

© Reuters. File Photo: The Samsung Electronics logo will appear on the dishwasher in a store in Seoul, South Korea, on August 27, 2020. REUTERS / Kim Hong-Ji / File Photo

By Joyce Lee and Heekyong Yang

Seoul (Reuters)-Samsung Electronics said Thursday that parts shortages are expected to impact chip demand from some customers this quarter after reporting the highest quarterly profits in three years.

The company said in a statement that it “may need to monitor longer-than-expected component supply issues due to its potential impact” on the manufacture of devices that use memory chips. Investment from technology companies. “

The world’s top manufacturer of memory chips increased operating profit by 28% in the July-September quarter to reach 15.8 trillion won ($ 13.48 billion). This is a revenue of 10.1 trillion won ($ 8.62 billion), following a sharp increase of 82% in the chip business from the previous year.

Rising memory chip prices and shipments, as well as the surge in profitability of Samsung’s (KS :) chip contract manufacturing business, boosted operating profit in the chips division, but Samsung’s new foldable smartphone sales are marketing and Controlled by the cost of the component.

Samsung expects demand for DRAM chips to temporarily store data from laptops and smartphones to remain strong in the fourth quarter due to the adoption of new CPUs and increased investment in data centers. Last quarter.

Supply chain issues could limit demand from some mobile chip customers in the fourth quarter, but demand for server and personal computer chips will be in 2022, despite uncertainty. Is expected to be strong.

Samsung did not comment on the outlook for memory chip prices.

Device production during the holiday season at the end of the year suffers from many supply chain problems such as labor shortages, logistics roars, parts factory shutdowns due to power shortages in China, and shortages of logic chip parts.

Tuesday’s small rival SK Hynix made a more bullish impression than its US peers and predicted stable demand for memory chips. Earlier, chip makers Intel (NASDAQ :) and Micron (NASDAQ :) stated that a lack of some components prevented customers from shipping their PCs.

Net profit increased 31% to 12.3 trillion won. Sales increased by 10% to 74 trillion won.

Samsung shares were flat on Thursday’s early trading, compared to a 0.2% rise in the wider market.

($ 1 = 1,172.0500 won)

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Samsung says a shortage of components affecting some chip demand, profits hit a three-year high

https://www.investing.com/news/stock-market-news/samsung-elec-q3-profit-rises-to-3year-high-on-chip-sales-2658390 Samsung says a shortage of components affecting some chip demand, profits hit a three-year high

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