Samsung net profit rose 10% in Q3 2021, thanks to strong chip sales

On October 28, Samsung released its financial results for the third quarter ending September 30, 2021. The total aggregated revenue was a quarterly record of KRW 73.98 trillion, an increase of 10% over the previous year, which was the highest level previously.

And the operating profit increased by 26% from the previous quarter to KRW 15.82 trillion, the second-largest ever, as favorable market conditions continue in the memory market while established and display businesses are gaining strong sales.

The Memory Business has seen significant improvements in revenue received through quarterly record submissions, as well as DRAM’s second-highest earnings, and Foundry Business’s results have improved due to strong sales to global customers. In the Display Panel business, revenue is rising as major smartphone customers introduce new products.

The Mobile Communications Business has seen a steady increase in revenue due to the strong demand for new foldable devices and mid-range smartphones as well as growth from tablets and wearables. Networks Business has expanded its global business, including in North America and Japan, and has continued to expand its integration of 5G network into the domestic market.

The Consumer Electronics Division saw the strong expansion of the premium TV and Bespoke product list, but profits declined due to rising consumer and planning costs.

The strength of most currencies compared to Korean won, and the US dollar, in particular, had a positive impact of about KRW 800 billion on operating profit compared to the previous quarter.

In the fourth quarter, the Company will focus on meeting the memory needs and products of the semiconductor system as part-time shortages in some customers may affect demand. The company will also maintain a strong profit margin of finished products by strengthening our leadership and programs in the paid sector.

In the Display Panel business, part of the mobile panels is expected to achieve strong results with the continued demand for smartphones and the growing sales of new apps. The company is in the early stages of producing quantum-dot (QD) indicators as planned.

By 2022, amid anticipation of a sustained global IT demand, the Company’s business segment will focus on expanding advanced processes and improving product and technology leadership.

The Company’s major expenditure in the third quarter amounted to KRW 10.2 trillion, which included KRW 9.1 trillion spent on semiconductors and KRW 0.7 trillion in exhibitions. The largest expenditure to date in 2021 was KRW 33.5 trillion, which includes KRW 30 trillion semiconductors and KRW 2.1 trillion for display.

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