Samsung sees strong demand, lingering shortages

STORY: Samsung expects strong demand for high-margin memory chips in the second half.

But the company also warned Thursday (April 28) that component shortages will likely drag on.

The world’s top smartphone maker said underlying server chip demand appears ‘relatively solid’.

That as companies raise investments and look to new technologies to improve their business.

Samsung cited companies expanding IT infrastructure.

It also pointed towards cloud companies investing in areas like artificial intelligence.

Samsung’s plan is to win more top-tier customers for chip making in fields like high performance computing and the auto industry.

But it sees weaker demand for its mobile phone and personal computer chips in the second quarter.

The South Korean firm blames inflation and health crisis lockdowns.

The forecasts come after Samsung confirmed a 51% rise in operating profit to just over $11 billion for the first quarter.

That was in line with forecasts and the company’s best Q1 profit since 2018.

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