Samsung revenue surges 21% powered by memory chips biz

Samsung Electronics reported revenue of 77.2 trillion won (+21 percent) and operating profit of 14.1 trillion won ($10.8 billion) (+12 percent) for the quarter ended June 30, 2022.
Samsung Neo QLED 8KSamsung said the MX and Networks businesses posted KRW 29.34 trillion in revenue and KRW 2.62 trillion in operating profit.

Samsung said the DS Division posted KRW 28.5 trillion in revenue and KRW 9.98 trillion in operating profit.

Samsung said the Visual Display and Digital Appliances businesses posted KRW 14.83 trillion in revenue and KRW 0.36 trillion in operating profit.

Samsung said SDC posted KRW 7.71 trillion in revenue and KRW 1.06 trillion in operating profit for the second quarter.

The increase in consolidated quarterly profit was due to solid sales of server memory chips.

A strong dollar, which hit a 20-year high, aided chip profits, boosting Samsung’s operating profit by about 1.3 trillion won versus the prior quarter, Samsung said.

Samsung’s chip sales are made mainly in dollars, while it reports its profit in Korean won, so a firm greenback translates to higher chip earnings.

The world’s top maker of memory chips and smartphones said mobile and PC chip demand would continue to weaken as macroeconomic uncertainties persist.

Samsung’s capital expenditures in the second quarter was KRW 12.3 trillion, including KRW 10.9 trillion spent in the DS Division and KRW 0.8 trillion in SDC.

Samsung said spending on memory was concentrated on infrastructure at P3 and on process migrations at fabs in Hwaseong, Pyeongtaek and Xi’an. Investments in the Foundry Business focused on increasing production capacity of under 5-nanometer advanced processes.