Samsung’s Q2 2021 profit was the highest in three years, thanks to strong chip sales

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Three weeks after unveiling its earnings expectations, Samsung has announced its final Q2 2021 numbers. The company said that its revenue increased 20%, and the operating profit increased 54% compared to Q2 2020. The company’s operating profit during the second quarter was the highest over the past three years, thanks to strong chip and memory sales.

Samsung’s revenue during the second quarter of 2021 was KRW 63.67 trillion (around $55.56 billion), and the company made an operating profit of KRW 12.57 trillion (around $10.97 billion). While the sales of Galaxy smartphones faltered due to chip shortages and disruptions in the company’s Vietnam factories, the company’s semiconductor chip divisions continued to drive profits. The chip division contributed KRW 6.93 trillion (around $6.04 billion) to the operating income, while the smartphone division contributed KRW 3.24 trillion (around $2.82 billion).

Samsung said that higher memory prices and increased demand for memory chips were the key factors driving higher profits. The company expects the demand for memory chips to stay strong for the rest of the year on the back of data center, PC, and server sales. The operations of its semiconductor fabs were back to normal as its Austin chip plant was working full swing.

In the future, the South Korean firm expects to solidify its leadership in the premium smartphone segment by mainstreaming the foldable category. The company is expected to launch the Galaxy Z Flip 3 and the Galaxy Z Fold 3 with sleeker and more durable designs and lower price tags. Samsung Display said that it is working on under-screen camera technology, which will debut with the Galaxy Z Fold 3.

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