28 Oct 2021
Samsung: Supply Chain Issues may Affect Chip Demand in Last Quarter
The Index Today
Ongoing supply chain disruptions and chip shortages are expected to affect demand during the last quarter according to Samsung Electronics. Other factors which have burdened the supply chain include manpower shortages in China, logistics issues and delays.
Samsung stated, “A longer than expected component supply chain issue may need to be monitored for potential impact on devices that use memory chips.”
The multinational giant has said that the demand for its DRAM chips and NAND chips will continue to remain stable in the last quarter as it continues to expand its investments in data centers. On the other hand, the company is not concerned about falling prices of memory chips as they are currently being used in many other devices as well.
Cape Investment & Securities analyst Park Sung-soon said, “There seems to be a clear gap in memory price outlook between chipmakers and the market. Companies are expressing a firm will to not sell chips at low prices. However, even server chip demand is not guaranteed at this point as the component supply issues are also affecting them.”
The company has stated it made a 28% jump in its profit for the recent quarter. The increase in prices of chips has also played a great role in boosting profits for Samsung. On the other hand, net profit has increased 31% to 12.3 trillion with shares rising 0.3% during afternoon trade on Thursday.