Korea’s largest semiconductor manufacturer, Samsung Electronics, reported its second-quarter financial results this week; reporting a 12% increase in operating profit to $10.8 billion.
Samsung managed to surpass its own expectations in terms of operating profit, and its amount reached a record level since 2018. Also, the company’s revenue rose 21% to $59.1 billion. Samsung’s operating profit was boosted in part by a two-year record strengthening of the US dollar; against the South Korean won. The company’s net profit reached $8.3 billion, which is somewhat less than market expectations.
Samsung anticipates a fall in PC and smartphone sales in the second half of 2022
Gizchina News of the week
All this did not prevent the division of Samsung Electronics, which specializes in semiconductor products; to increase core revenue by 24% to $21.8 billion; but the result in this area did not live up to analysts’ forecasts, being 22% lower. Revenue in the segment of smartphones and network equipment grew by 29% to $22.5 billion, exceeding experts’ expectations. Rival SK hynix said recently that demand for memory chips will decline in the current half of the year even in the server segment; although it has resisted this trend for quite some time. Samsung believes that in the second half of the year the demand for memory in the server segment will be fairly stable. In the smartphone segment; Samsung expects either demand to stabilize at the current level; or its slight growth in the entire second half of the year.
Qualcomm and Samsung have announced an expansion of their strategic partnership: the Korean electronics giant will be able to use the technologies of the American company until the end of the decade, and will also continue to use Snapdragon processors in its products. This was reported on the Qualcomm website.
The two companies managed to agree on the extension of the license agreement regarding the use of patented solutions in the field of 3G, 4G, 5G and even 6G until the end of 2030. Qualcomm will also increase Samsung’s supply of Snapdragon processors; which will be in use in Samsung Galaxy series devices; including smartphones, tablets, personal computers, augmented reality devices and other gadgets.