Samsung Electronics reported second quarter earnings with a 12% rise on Thursday on solid sales of server memory chips. However, the company warned mobile and PC chip demand would continue to weaken as macroeconomic uncertainties persist. Samsung Electronics overtook Intel as the top semiconductor maker in Q3 last year. Operating profit rose to 14.1 trillion won ($10.8 billion) for the quarter from 12.57 trillion won a year earlier, its highest second-quarter profit since 2018.
Samsung’s revenue rose 21% to 77.2 trillion won. Samsung’s chip sales are made mainly in dollars, while it reports its profit in Korean won, a strong greenback translates to higher chip earnings. The USD hit a 20-year high in the quarter, also aided chip profits, boosting Samsung’s operating profit by about 1.3 trillion won versus the prior quarter, Samsung said.
The Japanese Yen and South Korean won have been falling sharply lower in 2022. The won has weakened more than 8% this year, following an 8.6% drop in 2021, which was the fastest annual fall since 2008
Samsung Electronics is investing 20 trillion won (USD 17 billion) in the U.S. with the establishment of a second chip foundry. SK Hynix is also looking for business opportunities through strategies to strengthen its North American business, including recent investment in the US.O
Samsung Electronics’ semiconductor foundry market share is second after Taiwan’s TSMC.
Source: ANI/Global Economics Reuters
From The TradersCommunity Research Desk