Samsung Elec sees component shortages persisting in H2, solid server chip demand

Samsung's operating profit rose to 14.1 trillion won for the quarter ended March 31, from 9.38 trillion won a year earlier.

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

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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.

Samsung's operating profit rose to 14.1 trillion won ($11.1 billion) for the quarter ended March 31, from 9.38 trillion won a year earlier.

That was its highest first-quarter profit since 2018, and in line with the company's estimate earlier this month.

Profits at its chip business rose to 8.45 trillion won, more than double the 3.36 trillion won a year earlier, fueled by record sales of server chips in the quarter.