Component shortages to persist in second half

Solid earnings: A man walks past an advertisement for the Samsung Galaxy S22 smartphone at the company’s building in Seoul. Its operating profit rose to RM48.4bil for the quarter ended March 31, from RM32.2bil a year earlier. — AFP

SEOUL: Samsung Electronics Co Ltd reported a 51% rise in quarterly profit, buoyed by robust data centre demand for high-margin memory chips, but cautioned that component shortages will likely continue in the second half.

The world’s top memory chip and smartphone maker said demand for server chips is expected to be relatively solid in the second half, but the pace at which component shortages are resolved will need constant monitoring.“While uncertainties related to the macroeconomic environment and geopolitical issues are likely to persist, the company will prioritise increasing the portion of advanced processes for components,” it said in a statement.