Samsung Electronics reports 12 percent profit rise in Q2 | Technology

South Korean tech large studies document quarterly revenue for key semiconductor enterprise.

South Korean chip powerhouse Samsung Electronics has reported a 12.18 p.c rise in working revenue for the second quarter, with document earnings in its semiconductor division regardless of world provide chain woes.

The corporate’s “system semiconductor companies … achieved a document excessive quarterly revenue,” Samsung mentioned in a press release on Thursday, including it had each expanded its product line-up and elevated the availability of chips to world prospects.

“Earnings within the Reminiscence Enterprise improved each year-on-year and quarter-on-quarter because the Firm centered on assembly stable demand for servers,” Samsung mentioned.

In June, the corporate grew to become the primary chipmaker on the earth to mass-produce 3-nanometre microchips because it sought to match and ultimately outpace Taiwan’s TSMC within the race to fabricate the world’s most superior chips.

The brand new chips shall be smaller, extra highly effective and environment friendly, and shall be utilized in high-performance computing purposes earlier than being put into devices similar to cell phones.

The overwhelming majority of the world’s most superior microchips are made by simply two corporations — Samsung and TSMC — each of that are operating at full capability to alleviate a worldwide scarcity.

Samsung is the market chief in reminiscence chips, but it surely has been scrambling to meet up with TSMC within the superior foundry division, which makes high-tech microchips for different corporations.

‘Geopolitical points’

Samsung, which can be a world chief in handset manufacturing, mentioned demand and earnings from its smartphone division had been down from the primary quarter.

“Total market demand declined from the earlier quarter amid geopolitical points and issues over inflation on high of continued weak seasonality,” it mentioned.

“Profitability decreased from the earlier quarter at some extent as a result of rising prices of parts and logistics in addition to destructive results of overseas alternate motion,” it added.

However general, the weak spot of the Korean received in opposition to the US greenback benefitted the corporate, it mentioned within the assertion, “leading to an roughly 1.3 trillion received ($994 million) company-wide acquire in working revenue in comparison with the earlier quarter”.

The availability of reminiscence chips has garnered world geopolitical significance not too long ago, with main governments scrambling to safe superior chip provides.

That was demonstrated in Might when US President Joe Biden kicked off a South Korea tour by visiting Samsung’s sprawling Pyeongtaek chip plant.

Russia’s invasion of Ukraine has “additional spotlighted the necessity to safe our crucial provide chains”, Biden mentioned on the plant, underscoring the significance of bolstering know-how partnerships amongst “shut companions who do share our values”.

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