Samsung said on Thursday that after announcing its highest quarterly profit in three years, it expects that component shortages will affect the chip demand of some customers this quarter.
When the warning was issued, manufacturers of goods from televisions to automobiles were facing a series of supply chain problems, including shortages of logic chip parts, manpower shortages, logistics chaos, and delays in parts factories due to power outages in China. Samsung said in a statement that “due to the potential impact on the manufacturing of devices that use memory chips, it may be necessary to monitor longer-than-expected component supply issues, but it added that due to increased investment, the basic demand for servers is strong.”
Technology company ” The world’s largest memory chip and smartphone manufacturer’s operating profit for the July-September quarter increased by 28% to 15.8 trillion won (approximately Rs 101,090 crore) due to an 82% year-on-year increase in operating profit. In the chip business, revenue increased to 10.1 trillion won (approximately 64,620 crore).
Rising prices and shipments of memory chips, coupled with the substantial increase in the profitability of Samsung’s chip foundry business, have boosted the operating profit of the chip business. Samsung said that due to the expansion of data center investment, demand for server DRAM chips that temporarily store data and NAND flash memory chips that serve the data storage market is expected to remain strong in the fourth quarter, while the growth of the personal computer manufacturing industry is expected to remain at the same level. It was flat in the previous quarter.
The company said that although supply chain issues may limit the demand for some mobile chip customers in the fourth quarter, despite the uncertainty, demand for server and personal computer chips is expected to remain strong in 2022. Samsung did not comment on the prospect of memory chip prices, which put pressure on the company’s stock price, as investors expect prices to peak in the third quarter and then fall before mid-2022.
On Tuesday, smaller rival SK Hynix was more bullish than its US counterparts and predicted stable demand for memory chips. Earlier, chipmakers Intel and Micron had stated that shortages of certain components were preventing their customers from shipping personal computers. In the third quarter, the operating profit of Samsung’s mobile division fell by approximately 24% year-on-year to KRW 3.36 trillion (approximately Rs 21,495 crore), because sales of Samsung’s new foldable smartphones were affected by marketing costs.
News Source : Gadgets 360
