Samsung’s profit soars as Covid-19 resurgence fuels semiconductor demand


Samsung Electronics estimated that operating profit in the fourth quarter increased by 52.5% due to strong demand for server memory chips and an increase in orders for contract chip manufacturing, raising expectations for a recovery in semiconductor prices.

The operating profit of the world’s largest producer of computer chips and smartphones was forecast to be 13.8 trillion won ($ 11.5 billion) in the quarter ended in December, but there is also a special bonus to employees, 15.2 by Refinitiv trillion were lower than in the won of prediction. Sales are estimated to be 76 trillion won, up 23.5% from the previous year.

The profit of Korean companies May increase further According to analysts, this year was after the first quarter bottomed out. Chip prices, there is also that production at the Samsung factory in China of Xi’an, which is under blockade of Covid-19 has been reduced, are expected to recover in the second quarter.

CW Chung, head of research at Nomura in Seoul, said, “Chip prices are likely to fall more than expected in the first quarter, and supply from the Xian plant has declined, so it will begin to recover in the second quarter. “.

Samsung’s bright profit guidance came after Micron Technology reported stronger quarterly earnings than last month and forecast record earnings for 2022. Samsung will announce detailed earnings later this month.

Expectations for the chip price recovery after Temporary recession Since the demand of the data center and the streaming service has increased rapidly along with the revival of the occurrence of Covid around the world, Samsung’s market share rose more than 10% in the past few months. Samsung’s stock price rose 1.8% on Friday morning.

Samsung, which competes with contract chip maker TSMC, is also benefiting from increased orders for its foundry business, which manufactures semiconductors for third parties.However, the global non-memory chip crisis which affected Everything from the car The transition to household appliances has eased more slowly.

Analysts, Samsung said that it has won the casting order of two years up to 2023, the operating margin of the sector was estimated to have reached 10 to 20 percent.The company is also planning to invest $ 17 billion at new U.S. plant For contract chip manufacturing.

In a recent report, Cape Investment and Securities analyst Park Sung-soon said, “External risks such as the resurrection of the Covid-19 and a shortage of parts still remain, but the worst seems to be over. “. “The company may continue to see an increase in casting orders from key customers this year.”

Analyst said Blockade in Xi’an We have improved the pricing environment for both Dram and Nand flash memory chips and urged suppliers to postpone negotiations in anticipation of price increases. Drum chips enable short-term storage of graphics, mobile and server chips, and NAND flash chips allow files and data to be stored without power.

According to TrendForce, Samsung has two production lines in Xi’an, accounting for 42.5% of the total NAND flash memory production.

Analysts also expect Samsung’s mobile revenue to increase by mitigating parts shortages.Company’s Folding phone This year’s sales are expected to consist of two or three times the 15 million to 20 million, and is expected to 300 million more smartphones increased by about 10 percent from last year is shipped.


Your important guide to the billions that have been created and lost in the Asian Tech world. Exclusive news from FT and Nikkei, vivid analysis, smart data, a carefully selected menu of the latest technology topics

Sign up here with just one click

Samsung’s profit soars as Covid-19 resurgence fuels semiconductor demand Source link Samsung’s profit soars as Covid-19 resurgence fuels semiconductor demand

The post Samsung’s profit soars as Covid-19 resurgence fuels semiconductor demand appeared first on California News Times.

Source link


Please enter your comment!
Please enter your name here

Share post:


More like this

Are governments all for flexibility when regulating crypto? The answer is…

California Governor Gavin Newsom has vetoed a bill that...

Leftists To Protest Arizona Judge’s Ruling On Arizona Abortion Ban – Lifts Planned Parenthood’s Injunction

Leftists To Protest Arizona Judge's Ruling On Arizona Abortion...

Convex Finance: 13 unlocks later, CVX stands far from investor anticipation 

Convex Finance, a DeFi protocol built on Curve Finance,...

BREAKING BIG: Wisconsin County Takes Control Away from Dominion

BREAKING BIG: Wisconsin County Takes Control Away from Dominion...