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

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Samsung Elec sees component shortages persisting in H2, solid server chip demand
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Samsung Electronics Co Ltd said on Thursday it expects firm data centre demand for high-margin memory chips to continue in the second half, but warned component shortages will likely persist as well.

It plans to win more top-tier customers for chip manufacturing in fields outside mobile phones, such as high performance computing, network equipment and the automotive industry.

The South Korean giant confirmed a 51% rise in operating profit to 14.1 trillion won for the quarter ended March 31, in line with its previous forecast. It was the company's highest first-quarter profit since 2018., extending a year-to-date fall of 17%. "In the past, when the memory chip industry was very cyclical, there was high visibility in demand, so investment was attractively predictable. But now there are all these macro issues and low demand visibility."

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