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Samsung warns: demand for cell phone, PC chips to weaken further in second half

Update time : 2022-07-30 16:14:39

South Korean technology major Samsung said chip demand from smartphone and PC makers will weaken further in the second half of the year as consumption decreases, but stable server memory chips offer a ray of hope.

Reuters reported that Samsung achieved its best operating profit in the 2nd quarter since 2018 amid strong demand for server chips, but profits in its cell phone business were weak due to geopolitical issues, inflation concerns, and higher costs for components and logistics.
Samsung said Thursday (28) that in the memory business, demand for servers is expected to remain stable, while demand for computers and mobile devices is likely to remain weak. U.S. chip maker Qualcomm on Wednesday (27) also warned that the slowdown in smartphone demand will hit Q4 sales.
Ukraine crisis and the world's largest smartphone market, China's epidemic blockade has exacerbated supply chain obstacles, forcing many cell phone manufacturers to cut chip orders. However, Samsung is relatively optimistic about the second half of smartphone demand, supply disruptions have largely been resolved, demand is expected to remain stable or even single-digit growth.
Samsung's revenue grew 21% from April to June to 77.2 trillion won; Q2 profit increased to 14.1 trillion won from 12.57 trillion won in the same period last year, which is the highest profit in Q2 since 2018 and slightly higher than the original estimate of 14 trillion won. This includes a 9.98 trillion won profit from chips and a 2.62 trillion won profit from the cell phone business.
Rival SK Hynix said Wednesday (27) that demand for server memory chips may slow in the second half of the year as data center customers run out of inventory as they prepare for the recession.

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