Samsung Electronics Co. announced on Thursday that its operational profit for the third quarter increased by more than 53 percent over the same period last year, as the company thrived amid the pandemic by relying on its dual strength in parts and completed products.
Samsung’s operational profit for the October-December period was 13.9 trillion won ($11.6 billion), the highest for a fourth quarter since 2017, thanks to strong demand for computer memory chips and chip contract manufacturing, according to the firm.
Samsung’s revenue for the quarter was 76.6 trillion won ($63.7 billion), a quarterly high, driven mostly by increasing sales of completed products such as smartphones, televisions, and home appliances, according to the company.
Since the outbreak of the pandemic, the company has consistently recorded good profits, with demand for its chips used in computers and servers, as well as its household electronics items, increasing as COVID-19 drove millions of people to work from home.
Samsung stated in a statement that it will ramp up manufacturing of essential components in 2022, anticipating a larger worldwide rebound in technology demand. “Challenges linked with supply difficulties and COVID-19 are expected to persist,” the business added.
Because of growing information technology investments, the release of new computer processors, and the development of 5G-enabled mobile devices, Samsung expects demand for its memory chips used in servers to grow in 2022.
While Samsung has established itself as the market leader in memory chips used in smartphones, it is also attempting to increase its influence in the “foundry” business, which refers to the contract production of chips designed by other companies. Higher-margin logic chips built to execute a range of activities are driving this industry, and Samsung anticipates demand for these chips to increase in the coming years, boosted by future technologies like 5G mobile communications, artificial intelligence, and self-driving cars.
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