A Samsung Electronics estimated this Thursday a strong demand for memory chips in the second semester and a recovery in the cell phone market to 2019 levels, in a sign that the global economy is getting back on track after the coronavirus pandemic.
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The world’s biggest smartphone and memory chip maker posted a 54% jump in second-quarter operating profit, its strongest result in more than two years, supported by high chip prices and higher-than-expected demand.
“For the second half, market conditions should be favorable for the component business,” Samsung said in a statement. “Memory (chip) demand will likely be driven by the launch of new smartphone models, with broader 5G availability driving growth.”
The company warned that the global shortage of memoryless chips still poses a risk to forecasts, while uncertainties related to Covid-19 and geopolitical tensions are likely to persist.
The worldwide shortage of semiconductors other than memory chips is becoming a key issue for smartphone makers, as they prepare to launch new products in the second half of the year.
Samsung’s chip-making business, which makes these chips, posted record second-quarter revenue.
Samsung’s operating profit for the April-June quarter of 12.6 trillion won ($10.95 billion) was the company’s best result since the third quarter of 2018.