South Korean electronics giant Samsung once again earned significantly more than a year earlier in the second quarter, thanks to continued strong demand for chips for data centers. The surplus rose by 15 percent to 11.1 trillion won (about 8.3 billion euros), the South Korean group announced on Thursday. Sales rose 21 percent to 77.2 trillion won.
Samsung Electronics is the market leader in memory chips, smartphones and televisions. The robust semiconductor business had already delivered strong growth to Samsung in the first quarter, despite global supply chain problems. The chip manufacturers are mainly benefiting from the increased need for capacity in data centers that require the corresponding storage. According to the information, the semiconductor division’s operating profit rose to nearly ten trillion won in the months of April to June alone with a simultaneous quarterly record.
As for DRAM memory chips, the company had the industry’s highest quarterly sales of server products, it said in a statement. The chips are used in computers and game consoles, among other things. On the other hand, the demand for consumer products such as PCs and mobile devices has declined.
Samsung also expects a similar development for the second half of the year. It is expected that the demand for servers will continue to develop strongly. “Investments in core infrastructure and new growth areas such as AI and 5G are likely to continue to grow,” it said.
Decline in the smartphone market
In the smartphone business, Samsung noted a further downturn in the market compared to the first quarter, due to seasonal reasons, geopolitical concerns and inflation concerns. However, the supply disruption issues of the first quarter could have been largely resolved. As a result, sales rose again compared to the same period last year thanks to solid sales of flagship models – including the Galaxy S22 series.
According to Samsung, demand for smartphones in the second half of the year will develop similar to the first six months or will be in the single-digit range due to the uncertainties.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
