Samsung Electronics, Korea’s largest semiconductor maker, released its second-quarter financial results this week, reporting a 12% increase in operating profit to $10.8 billion.
The company managed to surpass its own expectations in terms of operating profit and its value reached a record level since 2018. In addition, the company’s revenue increased 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 income reached $8.3 billion, slightly below market expectations.
All this did not prevent the division of Samsung Electronics, which specializes in semiconductor products, from increasing core revenue by 24% to US$ 21.8 billion, but the result in this area did not match analysts’ forecasts, being 22% lower.
Revenue in the smartphone and network equipment segment grew 29% to $22.5 billion, beating experts’ expectations. Rival SK hynix recently said demand for memory chips will decline in the current half of the year, even in the server segment, although it has bucked this trend for some time.
Samsung believes that in the second half the demand for memory in the server segment will be quite stable. In the smartphone segment, Samsung expects demand to stabilize at the current level or its slight growth throughout the second half of the year.