Samsung profits jump by more than 900% on chips

Samsung Electronics reported a more than 900% increase in profits for the first quarter of 2021, thanks to strong demand for its semiconductor chips.

The South Korean tech giant said its operating profit for the January-March period was 9.3 trillion won ($8.3 billion), up from 903 billion won a year earlier. This marked the company’s highest first-quarter profit ever.

The surge in profits was driven by robust sales of Samsung’s memory chips, which are used in a range of electronic devices including smartphones, computers, and televisions. The global chip shortage has also boosted prices, further benefiting Samsung’s bottom line.

Samsung’s semiconductor business is a key driver of its overall profitability, and the company has been investing heavily in expanding its chip production capacity to meet growing demand.

Analysts expect Samsung’s chip division to continue to perform strongly in the coming quarters, as demand for semiconductors remains high amid the global shift to remote work and increased digitalization.