Sturdy demand for reminiscence chips and smartphones helped Samsung Electronics Co. ship its greatest first-quarter earnings ends in 4 years.
The corporate, which is the world’s largest reminiscence chip and handset producer, mentioned at this time that its working revenue jumped by a powerful 51%, to 14.1 trillion received ($11.1 billion), beating analyst’ expectations of 13.2 trillion received. The corporate additionally reported report consolidated income of 77.78 trillion received ($61.4 billion), up 19% from the identical interval one yr in the past.
The world’s expertise business has been hit onerous by a scarcity of parts for chipmaking that has been blamed on booming world demand and disruption to provide chains attributable to the COVID-19 pandemic. Nonetheless, the shortages have been extraordinarily helpful to Samsung, with the value of reminiscence chips which can be utilized in computer systems, information facilities and cell units rising considerably, serving to the corporate obtain report gross sales.
Reminiscence chips accounted for the majority of Samsung’s income, with gross sales of 26.87 trillion received fueling an 8.45 trillion received working revenue for the enterprise within the first quarter.
Gloria Tsuen, vice chairman of Moody’s Traders Service, informed Agence France-Presse that Samsung continues to be lifted by the semiconductor section, due to robust demand for each dynamic random-access reminiscence and NAND flash chips from the info heart business.
As well as, Samsung has benefited from disruption at a rival NAND flash fab owned by Western Digital Corp. and Kioxia Holdings Corp. that has led to “reduced market supply,” the analyst mentioned.
In the course of the quarter, it was revealed that Samsung surpassed its greatest rival Intel Corp. to grow to be the world’s greatest vendor of semiconductors when it comes to income.
Samsung has additionally been aggressively ramping up its investments in its semiconductor enterprise. In November, the corporate introduced plans to construct a $17 billion chip manufacturing unit in Texas, its second within the U.S. The plant will make superior semiconductors that can be utilized to energy smartphones, 5G and synthetic intelligence workloads. It’s anticipated to create 2,000 new high-tech jobs within the state.
“Memory chip makers generally need to keep capacity high to support technology migration,” Tsuen mentioned. “Samsung is also in the foundry segment, and the new fab in Texas is an example of increased investment in that area as well.”
Samsung’s different predominant enterprise is its handset unit, which delivered 32.3 trillion received in income and a revenue of three.82 trillion received throughout the first quarter. Analyst agency Counterpoint Expertise Market Analysis mentioned the corporate’s new flagship smartphone, the Galaxy S22 collection, bought 60% extra models than the S21 telephone it changed throughout the first three weeks of occurring sale within the U.S.
“Strong sales of the Galaxy S22 series since its launch in Q1 helped drive the revenue growth, on the back of Galaxy S22 Ultra with S-Pen garnering positive feedback from the existing Galaxy Note customers,” Samsung mentioned in a press release.