Samsung profit to rise 160%

Al, tight chip supply spur memory prices

- HYUNJOO JIN

Samsung Electronics is expected to flag a 160% jump in its fourth-quarter operating profit spurred by a severe chip shortage that has sharply driven up memory prices as customers scramble to meet booming demand for artificial intelligence.

Semiconductor prices have rocketed in recent months, as the industry’s shift to Al-related chips has curbed production for traditional memory, while demand has been surging for both conventional and advanced chips to train and run AI models.

Samsung is likely to estimate an operating profit of 16.9 trillion won ($11.7 billion) for the October to December period, according to LSEG SmartEstimate from 31 analysts, which is weighted towards those who are more consistently accurate.

This compares with 6.49 trillion won from a year earlier and would mark the highest quarterly profit since the third quarter of 2018, which was a record high of 17.6 trillion won.

Some analysts have in recent weeks raised their estimates for Samsung's fourth-quarter operating profit to more than 20 trillion won on the back of stronger-than-expected prices of traditional chips.

The world’s top memory chip maker is set to release its estimates for revenue and operating profit tomorrow.

MEMORY CHIP PRICES