Global chip shortage: Samsung forecasts 53% jump in quarterly profit

Tech giant Samsung Electronics has said it expects its quarterly profit to rise by 53% amid a global chip shortage.

The world’s biggest memory-chip and smartphone maker forecast operating profit of $11bn (£8bn) for the three months to the end of June.

It said strong demand for memory chips had offset weaker sales of devices due to the shortage of components.

A year ago, in the first few months of the pandemic, Samsung saw sales of products such as phones and TVs slump.

Since then demand for electronics components has surged as people shifted more of their lives online, while many chip makers struggled to keep up with demand.

The South Korean electronics giant’s outlook easily beat analysts’ expectations, signalling continued strength for the technology industry.

If the figures are confirmed later this month, it would be Samsung’s biggest second quarter profit since 2018.

In recent months, computer chip makers in particular have had much greater power to increase their prices during the historic supply crunch.

In March, Samsung’s co-chief executive and mobile chief, Koh Dong-jin told shareholders: “There’s a serious imbalance in supply and demand of chips in the IT sector globally.”

He also said that the company was working with overseas partners to meet demand as global shortages caused supply disruptions.