Samsung benefits from strong chip demand

Samsung benefits from strong chip demand

Samsung Electronics logo in Seoul

According to experts, business with smartphones and TV sets is slowing down worldwide in contrast to chips.

(Photo: Reuters)

Seoul Thanks to continued strong chip demand, the electronics giant Samsung recorded high growth for the second quarter of 2022. In its earnings forecast for the period from April to June, the world market leader in memory chips, smartphones and televisions expects operating profits to increase by 11.4 percent.

Profits from core businesses are expected to reach 14 trillion won (about 10.5 billion euros), the South Korean company announced on Thursday.

Expected in sales Samsung Electronics an increase of 21 percent to 77 trillion won (58 billion euros). Samsung traditionally only presents exact business figures at a later date.

The demand for capacity in data centers is primarily driving profits in the semiconductor division. The business with memory chips had already exceeded market forecasts in the first quarter.

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On the other hand, according to experts, business with smartphones and TV sets slowed down worldwide. Accordingly, the reluctance of consumers as a result of high inflation made itself felt in these areas. As South Korean news agency Yonhap reported, Samsung sold an estimated 61 million smartphones in the second quarter. That would be a decline of 16 percent compared to the previous quarter.

More: The race to catch up with chips threatens to fail – the future of German industry is at stake

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