Samsung Electronics estimated its fourth-quarter operating profit jumped 52.5 per cent on strong demand for server memory chips and increasing orders for contract chip manufacturing, fuelling hopes of a semiconductor price recovery.
Operating profit for the world’s biggest producer of computer chips and smartphones was projected at Won13.8tn ($11.5bn) in the quarter ended December, but lower than the Won15.2tn forecast by a Refinitiv, partly because of special bonuses to employees. Sales were estimated at Won76tn, up 23.5 per cent from a year earlier.
The South Korean company’s earnings are likely to increase further this year after a bottom in the first quarter, analysts said. Chip prices are expected to rebound in the second quarter, partly thanks to reduced production at Samsung’s plant in Xi’an, China, which is under a Covid-19 lockdown.