Samsung expects upbeat chip demand, second quarter profit climbs
Samsung Electronics Co Ltd looks forward to the second half of the year as it expects a larger increase in chip demand brought by new smartphone launches. However, the company warned that the coronavirus crisis and trade disputes carry risks.
Samsung, the world’s leading manufacturer of memory chips and smartphones, reported a 23% increase in operating profit from April to June. The jump could be attributed to upbeat DRAM chip sales.
The company expects the strong momentum to continue up until the second half of the year, with customer inventory and investment plans placed under tight monitoring.
The company’s operating profit recorded a 60% jump in the second quarter, covering two-thirds of its overall profit. Despite subdued smartphone shipments, the mobile division had seen its operating profit advancing 25% to 1.95 million won.