Samsung Elec says demand for chips to remain strong after Q2 profit rises

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FILE PHOTO: The logo of Samsung Electronics is seen at its headquarters in Seoul
FILE PHOTO: The logo of Samsung Electronics is seen at its headquarters in Seoul, South Korea, April 4, 2016. REUTERS/Kim Hong-Ji/File Photo

July 29, 2021

By Joyce Lee and Heekyong Yang

SEOUL (Reuters) -Samsung Electronics Co Ltd said on Thursday it expects favourable market conditions for its component business in the second half of the year, after announcing its highest quarterly operating profit since 2018.

The world’s top maker of memory chips and smartphones posted a 54% jump in operating profit in the April-June quarter to 12.6 trillion won ($10.95 billion), from 8.1 trillion won a year earlier.

Samsung said the result was buoyed by strong memory-chip prices and higher-than-expected demand from consumer electronics makers and data centre customers.

Mobile profits dipped from the previous quarter due to constrained supply of mobile processor chips and production disruptions related to the coronavirus pandemic, it said in a statement.

Net profit rose 73% to 9.6 trillion won. Revenue climbed 20% to 63.7 trillion won.

($1 = 1,150.2300 won)

(Reporting by Joyce Lee and Heekyong Yang; Editing by Jacqueline Wong)