Samsung stories revenue bounce pushed by robust chip demand


SEOUL: Samsung Electronics Co. mentioned Thursday its working revenue for the final quarter rose by greater than 26% because it capped off a strong enterprise yr the place its twin energy in elements and completed merchandise allowed it to thrive amid the pandemic.

However the South Korean tech large expects its revenue to weaken within the present quarter with a weak greenback and prices related to expanded manufacturing strains seemingly affecting its bread-and-butter computer memory chip enterprise.

Like many know-how corporations, Samsung has gotten a lift from surging demand for its pc chips and gadgets because the pandemic forces folks to do business from home.

Samsung has additionally handled authorized points surrounding its vice chairman and de facto chief, Lee Jae-yong, who final week was sentenced by the Seoul Excessive Courtroom to 2 and a half years in jail for his involvement in a 2016 corruption scandal that spurred large protests and ousted South Korea‘s then-president.

“For 2021, the corporate expects a restoration in total international demand however uncertainties persist over the potential for recurring COVID-19 waves,” Samsung mentioned in an emailed assertion.

Samsung’s working revenue of 9.1 trillion received ($8.1 billion) for the October-December quarter represented a 26.4% improve from the identical interval a yr earlier than, whereas its income rose by 2.8% to 61.6 trillion received ($55.three billion). The corporate’s working revenue for the total yr of 2020 was at 36 trillion received ($32.three billion), rising by greater than 29% from 2019, in accordance with a regulatory submitting.

Samsung noticed its semiconductor enterprise rebounded sharply final yr after a sluggish 2019, pushed by sturdy demand for PCs and servers as virus outbreaks compelled hundreds of thousands of individuals to remain and work from home. The Trump administration’s sanctions towards China’s Huawei Technologies have in the meantime hindered one in every of Samsung’s largest rivals in smartphones, smartphone chips and telecommunications gear.

Samsung mentioned it continued to see a powerful total demand for its reminiscence chips within the fourth quarter as main purchasers launched new smartphone fashions and cloud computing corporations elevated their funding in information facilities. PC demand remained robust, pushed by Chromebooks, gaming notebooks and the discharge of recent graphics playing cards and gaming consoles, the corporate mentioned.

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