Samsung reports robust profit thanks to chip demand

SEOUL, South Korea (AP) — Samsung Electronics on Thursday reported its highest quarterly profit in three years as it continues to see robust global demand for its computer memory chips.

The South Korean technology giant also said its revenue of 74 trillion won ($63 billion) for the July-September period was a new quarterly record. Operating profit jumped 26% from the previous quarter to 15.8 trillion won ($13.48 billion), its highest since the same period of 2018, a growth the company attributed to “favorable market conditions” that led to rising semiconductor prices and shipments.

Samsung also saw an increase in sales for its smartphones and premium TVs, although rising costs tied to raw materials and logistics dented profitability.

Samsung’s dual strength in parts and finished products has allowed it to flourish during the pandemic, which increased the demand for its memory chips used in computing devices and servers as millions of people were forced to work at home.

However, the company said it was dealing with “longer-than-expected” component shortages that may affect the demand for semiconductors during the current quarter.

It also said it expects demands for TVs to slow in the coming months as people spend less time at home amid eased social distancing restrictions.