Record results for Samsung in a time of semiconductor shortage

Korean group Samsung Electronics generated quarterly profit up 73% to 7.07 billion euros.

© Jung Yeon-je / AFP

Text by: RFI Follow

2 min

Korean giant Samsung Electronics saw its quarterly profit jump 73% to 9600 billion won (7.07 billion euros), thanks in particular to the rise in prices of electronic chips linked to very strong demand in times of pandemic.

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The rise of teleworking has boosted demand for devices operating with semiconductors, of which the South Korean juggernaut is the great specialist.

Sales of these devices exceeded expectations and rising chip prices did the rest.

Samsung Electronics is already anticipating favorable market developments by the end of the year with continued sustained demand for memory chips for servers and mobile phones.

A major shortage of semiconductors

The flip side is that the pandemic continues to be a source of uncertainty.

And the shortage of memory chips prevents many manufacturers from meeting the growing demand.

For example, sales of smartphones around the world have been heavily penalized.

The same goes for the automobile.

Manufacturers say they could sell more cars.

But their supply chains are still disrupted.

According to analysts, it will take one to two years for semiconductor manufacturers to fully meet demand.

► To read also: Shortage of semiconductors: the dependence of the West on Asia in question

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