Samsung will profit from the chip crisis

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Lately, Samsung Electronics said he expects to register a 52% increase in profits for the last three months of 2021. La global chip shortage appears to have benefited the company significantly, which estimates it has earned over $ 11 billion from the sale of memory chips. Highest fourth quarter operating profit in four years. An absolutely remarkable record, especially at a time when semiconductors are in short supply around the world.

Chip shortage: Samsung plans to boost its earnings

We’ve talked dozens of times about the chip shortage, but never about how Samsung managed to take advantage of this situation. There growing demand for server memory chips has done nothing but match the company’s manufacturing work, so as to allow it to reach record profits in the last months of 2021. “Samsung is well positioned to profit from the record demand for PCs and electronics,” commented the analyst. Sam Reynolds, who also noted how Samsung has benefited from currency fluctuations.

“The Korean won continues to depreciate, making Korean exports more attractive on the global market.” Yet despite everything, the estimated profit was less than the 15.2 trillion won expected by many analysts. And this would appear to be due to Samsung’s corporate policy, which has invested money in employee bonuses and marketing strategies for its new smartphones. But it matters little in this context. What is interesting is just how the chip shortage turned out a profit opportunity for the company.

At the moment, however, the real problem seems to be represented by the fact that the production of chips at the Xi’an plant is temporarily stopped because the entire Chinese city has been in isolation since December 23rd. For its part, Samsung has already stated that it “will temporarily fix operations”. But it is clear that production will not stop, especially considering that the company has announced the construction of a new $ 17 billion facility near the town of Taylor in Texas. The plant will be operational in the second half of 2024, but clearly demonstrates Samsung’s interest in making up for the chip shortage.

Walker Ronnie is a tech writer who keeps you informed on the latest developments in the world of technology. With a keen interest in all things tech-related, Walker shares insights and updates on new gadgets, innovative advancements, and digital trends. Stay connected with Walker to stay ahead in the ever-evolving world of technology.