The booming business is causing the profits of Samsung to soar

The booming business with semiconductors is causing the profits of electronics giant Samsung to soar. The surplus climbed in the second quarter by 73.4 percent year-on-year to 9.63 trillion won (7.07 billion euros), as the South Korean company announced. With 63.67 trillion won (46.8 billion euros), the market leader in memory chips, smartphones and televisions achieved its highest sales in a second quarter. The memory chip deliveries were above previous estimates and the price increases were higher than expected, it said in a statement. For the second half of the year, Samsung expects the market conditions to continue to develop favorably. In the corona pandemic, South Koreans benefited primarily from increased work from home, which led to greater demand for memory chips for servers and PCs. Due to the shortage of chips that arose at the same time, the prices for individual components also rose. The replenishment problems are noticeable at Samsung in the smartphone division. The increase in average sales prices for both DRAM memory chips and NAND flash memory accelerated "more than expected" in the second quarter, according to Samsung. Flash chips are mainly used in mass storage devices such as USB sticks and camera memory cards. In the smartphone business, South Korea's model company recorded a significantly higher operating profit compared to the second quarter of the previous year. However, compared to the first quarter of this year, demand has fallen due to seasonal factors and the increased spread of the corona virus, it said. From April to June, 60 million mobile phones were sold after 81 million in the previous quarter. The company expected sales of its flagship model to slow down. Samsung launched the Galaxy S21 series in January. Looking ahead to the rest of the year, Samsung announced that it wanted to "maintain solid earning power in smartphones and consumer electronics by strengthening leadership in the premium category." However, the risks from interruptions in the supply chain of components and the uncertainties surrounding the corona pandemic would likely remain.