HomeNewsProfits To Jump 44% Despite Chip Supply Problems Says Samsung

Profits To Jump 44% Despite Chip Supply Problems Says Samsung

Earlier this year, the US faces some harsh winter storms that caused the Samsung chipmaking facilities to shut down temporarily. However, despite the shutdown, Samsung has said to have pulled a strong quarter.

The South Korean enterprises stated on Wednesday that in its operations from January to March most likely made around 9.3 trillion Korean won, which’s around $8.3 billion, which is a 44% jump when compared to last year, at the same period.

Samsung Electronics says Q1 profit likely rose 44%, matching expectations
Samsung Electronics says Q1 profit likely rose 44%, matching expectations

It also got estimated that there was a 17% year-on-year climb of the sales to around 65 trillion Korean won ($58.2 billion).

These preceding results roughly match the forecast that got provided by analysts at Definitive, the data provider.

In February, Samsung’s semiconductor plant-based in Texas had to get forced to shut down because the state got hit by a massive winter storm that caused widespread power outages.

However, Samsung’s production reached close to the levels they normally would have, as said by the company.

It got estimated by the analysts that the disruption cost the company an estimated 400 billion Korean won ($358 million).

That is if we were to assume that 100,000 semiconductor wafers had gotten discarded, said an analyst at Yuanta Securities.

It was not the right time for such a suspension to get struck.

For many months now, the global chip industry has been struggling with the supply, and many players are finding it hard to keep up with the demand.

Koh Dong-Jin, the co-CEO of Samsung, last month told the investors how the company was having some issues with its supply chain.

He further told them how the company was having issues with the semiconductors and could face the same problem in the second quarter also.

Nonetheless, the Austin, Texas situation is improving and recovering its output. An analyst, CW Chung from Nomura, in a statement to its clients on Wednesday, said that the company should start getting earning from the chip division of Samsung.

Furthermore, analysts at Nomura think that the prices might increase for some semiconductor parts for the second quarter, which can help the company get a lot of profit in the coming months.

Even after the problems that Samsung faced, it has gotten expected to shine.

In January, the company released the new Galaxy S21 devices, earlier than expected.

Samsung did not have to break down on its earning or early release. The company is said to have the full reports and results later this month.

The founder and CEO of ThriveVerge, Thrive, and The Verge Revolution. In 2016, he launched Thriveverge, a leading behavior change technology, news, media, entertainment, and daily news company with the mission of changing the way we work and live by ending the collective delusion that burnout is the price we must pay for success.

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