nearly 60% increase in net profit in Q1

South Korean giant Samsung Electronics on Thursday April 28 announced a 58.57% link in its net profit in the first quarter of 2022 compared to the same period of the previous year, thanks to strong demand for memory chips and sustained smartphone sales. Net profit for the world’s largest smartphone maker reached 11.32 trillion won ($8.9 billion) in the period between January and March, the group said in a regulatory announcement.

The technology sector has suffered from a shortage of components used in the manufacture of chips, linked to a sharp increase in global demand for electronic devices and difficulties in supply chains in the wake of the coronavirus pandemic. But analysts said the backdrop benefited the world’s biggest chipmaker. Their prices soared last year amid strong demand for chips used in consumer devices and data centers, enabling the South Korean group to achieve record annual sales.

Samsung’s performance “continues to be driven by the semiconductor segment, supported by demand for memory chips – DRAM and NAND – from data centers”, commented for AFP the vice-president of the rating agency Moody’s, Gloria Tsue. She added that disruptions at a competing factory of NAND Flash memory chips (used in particular in smartphones, USB keys, industrial and medical equipment, editor’s note) belonging to the American company Western Digital and the Japanese company Kioxia, had benefited to Samsung “due to reduced supply on the market”.

Samsung Electronics is the flagship subsidiary of the giant Samsung Group, by far the largest of the family empires, known as the chaebols, which dominates business in South Korea. The conglomerate’s turnover is equivalent to about one-fifth of South Korea’s Gross Domestic Product.

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