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Samsung Electronics Q4 profit jumps on server chip demand, foundry margins -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO: A Samsung sign is visible in New York City’s Manhattan store on November 22nd, 2021. REUTERS/Andrew Kelly

Joyce Lee and Heekyong Yan

SEOUL (Reuters). Samsung Electronics Co Ltd announced Friday that it expects its October-December operating income to rise 52% over the year, reaching its fourth-quarter highest profit in four decades. The solid demand for chip-contract manufacturing and server memory chips helped drive this growth.

According to estimates, the fourth quarter profits of 13.8 trillion won (11.5 billion), the largest smartphone and memory chip manufacturer in the world was earned by Samsung.

Refinitiv SmartEstimate was 15.2 trillion won missed. Analysts attribute this quarter to expenses such as bonuses and marketing costs for the mobile business. Also, ramp up costs for new panels were not included in the quarter.

In a brief earnings release, Samsung (KS) stated that revenue likely rose by 23% compared to the previous year’s period and reached 76 trillion won.

This month, the company will release details about its earnings.

Analysts stated that even though memory chip prices fell in the fourth quarter, there has been an increase in server client demand which has boosted Samsung’s quarter on quarter shipments. These chips are widely used by data centres and for data storage.

($1 = 1,204.0400 won)

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