© Reuters. FILE PHOTO: The emblem of Samsung Electronics is seen at its workplace constructing in Seoul, South Korea, March 23, 2018. REUTERS/Kim Hong-Ji
By Joyce Lee and Heekyong Yang
SEOUL (Reuters) -Samsung Electronics Co Ltd reported a 51% rise in quarterly revenue on Thursday, buoyed by sturdy information centre demand for high-margin reminiscence chips, however cautioned that part shortages will possible proceed within the second half.
Samsung (KS:) stated demand for server chips is anticipated to be strong within the second half, however the tempo at which part shortages are resolved will want fixed monitoring.
Working revenue on the world’s high reminiscence chip and smartphone maker rose to 14.1 trillion received ($11.1 billion) for the quarter ended March 31, from 9.38 trillion received a yr earlier.
That was its highest first-quarter revenue since 2018, and consistent with the corporate’s estimate earlier this month.
“Whereas uncertainties associated to the macroeconomic setting and geopolitical points are more likely to persist, the corporate will prioritize growing the portion of superior processes for parts,” Samsung stated in a press release.
Earnings in its chip enterprise rose 5.1% to eight.45 trillion received, fueled by document gross sales of server chips within the quarter.
Reminiscence chip rival SK Hynix on Wednesday forecast strong demand for server chips however warned that gross sales to smartphone and private pc prospects was softening because of COVID-19 led lockdowns in China.
In Samsung’s non-memory chip enterprise, the rising value of older chip fashions in addition to bettering yields at its chip contract manufacturing enterprise lifted its earnings in contrast with the earlier quarter, analysts stated.
General income rose 19% to a document 77.8 trillion received.
The corporate stated it expects chip demand from server shoppers to stay comparatively strong within the second quarter, and the smartphone market is projected to proceed to develop within the second half of the yr.
Nonetheless, part shortages and lack of capability availability at its chip contract manufacturing services are additionally anticipated to proceed.
Analysts stated Samsung’s current deal with promoting extra high-margin reminiscence merchandise to prioritise profitability over quantity would finally restrict shipments and assist enhance DRAM costs later within the yr, as would the restricted will increase in chip manufacturing capability because of supply delays in chipmaking gear.
Samsung shares traded down 0.5% in early commerce on Thursday, in contrast with a flat wider market.
($1 = 1,266.2800 received)