Samsung Profits Rise 73% As Demand For Memory Chips Rises

SEOUL— Samsung Electronics Co. has made up for the relatively weak smartphone shipments by capitalizing on another quarter of growing demand for its memory chips.

Samsung, the world’s largest smartphone and memory chip maker, is seen as an industry indicator as it is both a major electronics maker and component supplier to the world’s largest tech companies, including Apple Inc. and Sony Group Corp.

The South Korea-based company posted second-quarter net profit of 9.630 billion won, the equivalent of $ 8.37 billion. This is a 73% increase from 5.56 trillion won a year earlier.

Revenue rose 20 percent to 63.67 trillion won. The performance exceeded analysts’ estimates and highlighted global appetite for digital goods and services that this week too helped increase income at Microsoft Corp., Apple and the mobile phone chip company Qualcomm Inc.

The strength of Samsung’s memory business propelled its second quarter results. Pandemic changes have kept demand high for personal computers, data servers, and mobile devices, all of which require memory chips. As a result, memory chip makers saw growth in shipments and enjoyed greater pricing power.

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