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Samsung Flags 53% Jump in its Profits

Samsung Electronics Co Ltd announced a probable 53 percent increase in second-quarter operating profit on Wednesday, exceeding market expectations despite weaker smartphone sales, thanks to robust semiconductor prices and demand. The preliminary figure is up 33% from the first quarter, highlighting the increasing demand for semiconductors, which has depleted stockpiles amid a pandemic-driven consumer hunger for devices and resurgent data center investment.

The world’s top memory chip and smartphone maker said profit for the quarter ended June 30 was likely 12.5 trillion won ($11 billion), significantly higher than the 11.3 trillion won Refinitiv SmartEstimate. It would be the tech giant’s most significant second-quarter profit since 2018. If confirmed later this month. Analysts estimate that Samsung chip division profit increased by a fifth or more year over year in the second quarter, owing to robust memory chip prices and demand from consumer electronics and data center clients.

Samsung memory chip sales were higher than expected, notably for DRAM chips, which are widely used in servers, mobile phones, and other computing devices, contributing to chip earnings that dwarfed a dramatic drop in smartphone shipments quarter over quarter. Samsung memory chip sales were higher than projected, particularly for DRAM chips, which are widely used in servers, mobile phones, and other computing devices, contributing to semiconductor earnings that outstripped a sharp drop in smartphone shipments quarter over quarter.

Analysts believe that increased yield in cutting-edge 1z nanometre DRAM chip manufacture utilizing ASML’s extreme ultraviolet lithography (EUV) machines reduced expenses in the first quarter. In addition, analysts predicted that profits at Samsung semiconductor contract manufacturing and logic chip design divisions would recover once activities at a storm-devastated factory in Texas resumed.

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