Samsung: Q2 operating profit up, driven by chip demand

Samsung: Q2 operating profit up, driven by chip demand

SEOUL (Reuters) – Samsung Electronics on Thursday reported an 11% rise in second-quarter operating profit as demand for memory chips offset declining sales to smartphone makers.

The South Korean conglomerate estimates its operating profit for the second quarter at 14 trillion won (10.5 billion euros), which represents the group’s best performance for the April-June period since 2018.

However, this is less than the 14.450 billion won given by the Refinitiv SmartEstimate consensus.

The estimated turnover for the quarter is up 21% year on year to 77 trillion won, the group said, an amount in line with market expectations.

Samsung is due to release its detailed quarterly later this month.

Samsung took advantage of strong demand from big US tech companies, which continued to buy chips to keep their server operations going.

Many chipmakers, however, have warned of a surplus of chips with their customers, who have been stocking up during the pandemic to meet the demands of their telecommuting customers.

Other manufacturers like Micron or Advanced Micro Devices have also reported falling demand as inflation cuts spending.

(Report Joyce Lee and Heekyong Yang; French version Camille Raynaud)

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