Tech giant Samsung Electronics has said it expects its quarterly profit to rise by 53% amid a global chip shortage.<\/p>\n\n\n\n
The world’s biggest memory-chip and smartphone maker forecast operating profit of $11bn (\u00a38bn) for the three months to the end of June.<\/p>\n\n\n\n
It said strong demand for memory chips had offset weaker sales of devices due to the shortage of components.<\/p>\n\n\n\n
A year ago, in the first few months of the pandemic, Samsung saw sales of products such as phones and TVs slump.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
The South Korean electronics giant’s outlook easily beat analysts’ expectations, signalling continued strength for the technology industry.<\/p>\n\n\n\n
If the figures are confirmed later this month, it would be Samsung’s biggest second quarter profit since 2018.<\/p>\n\n\n\n
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In recent months, computer chip makers in particular have had much greater power to increase their prices during the historic supply crunch.<\/p>\n\n\n\n
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.”<\/p>\n\n\n\n
He also said that the company was working with overseas partners to meet demand as global shortages caused supply disruptions.<\/p>\n\n\n\n
Chip shortage: What other industries have been hit?
The chip shortage has also hit car makers hard, with major motor manufacturers around the world being forced to halt production at various times.<\/p>\n\n\n\n
In recent months, auto brands including Ford, General Motors, Volkswagen and Jaguar Land Rover have all suspended their production lines.<\/p>\n\n\n\n
Last month, US President Joe Biden and European commissioner Margrethe Vestager unveiled plans to manufacture more computer chips in Europe and the US.<\/p>\n\n\n\n
The initiative is one of the key focuses of a new trans-Atlantic technology alliance known as The Trade and Technology Council.<\/p>\n\n\n\n
A statement on a summit between President Biden and Commissioner Vestager included a pledge to build “an EU-US partnership on the rebalancing of global supply chains in semiconductors”.<\/p>\n\n\n\n
The European Union wants to increase its share of the global chip-manufacturing market from 10% to 20% and has promised $150bn towards the effort. Meanwhile, the US has allocated $52bn to domestic chip manufacturing.<\/p>\n","protected":false},"excerpt":{"rendered":"
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 (\u00a38bn) for the three months to the end of June. It said strong demand for memory chips had offset weaker sales of devices […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-440","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\n