Samsung Electronics Forecasts Strong Chip Demand

Samsung Electronics Co Ltd on Thursday forecast strong demand for memory chips in the second half and a recovery in the mobile market to 2019 levels, in a sign the global economy is getting back on track from the coronavirus pandemic.

The world’s top maker of memory chips and smartphones posted a 54% jump in operating profit for the second quarter, its strongest result in more than two years, supported by high chip prices and better than expected demand. The company cautioned that a global shortage of non-memory chips still poses a risk to forecasts, while uncertainties related to COVID-19 are likely to persist. A worldwide shortage of semiconductors other than memory chips is becoming a key issue for smartphone makers as they prepare to launch new products in the second half of the year. Samsung plans to unveil its next flagship foldable smartphone on Aug. 11, which is expected to be compatible with a stylus specifically designed for foldable phones.