Sales at Samsung hit a new record in the third quarter. The South Korean tech group enjoyed a windfall from the global chip shortage which is pushing up semiconductor demand and prices. But in the coming quarters, its fortunes will depend more on folding phones than chips.
Operating profit in the three months to September rose 28 per cent to $13.5bn, as the chip unit’s earnings nearly doubled. Semiconductors accounted for about two-thirds of group profit. Global demand for smartphones has also surged this year. Samsung is the leader in this market, with a 23 per cent share.
Those trends should persist. A prolonged global chip shortage means companies have depleted most of their usual chip inventory. The order book for server chips will remain strong as companies ramp up data centre investments.