Consolidated operating profit came in at 12.57 trillion won (11 billion U.S. dollars) in the April-June quarter, up 54.3 percent from a year earlier. It was the highest in 11 quarters since the third quarter of 2018.
Revenue hit a fresh high of 63.67 trillion won (55.6 billion U.S. dollars) in the three months ending June 30, up 20.2 percent from the same period of last year.
Net income surged 73.4 percent to 9.63 trillion won (8.4 billion U.S. dollars) in the second quarter.
The semiconductor business recorded an operating profit of 6.93 trillion won (6.1 billion U.S. dollars) on revenue of 22.74 trillion won (19.9 billion U.S. dollars) in the second quarter.
The profit accounted for over half of the combined operating profit, led by brisk demand for server and PC memory chips as well as stronger-than-expected increases in average sales prices for both DRAM and NAND chips.
Cost reduction from the ongoing adoption of the latest manufacturing process also contributed to the robust profit, the company said.
Chip demand remained high across the world as the trend for remote work and education lasted amid the prolonged COVID-19 pandemic.
Samsung expected the memory chip market's fundamentals to remain strong in the second half amid the sustained demand for server and PC chips and the increasing 5G adoption despite risks from the spread of COVID-19 variants and the persistent supply problems for components.
The display panel division posted an operating profit of 1.28 trillion won (1.1 billion U.S. dollars) on revenue of 6.87 trillion won (6 billion U.S. dollars) in the June quarter.
Earnings for mobile display panels grew amid the continued adoption of organic light-emitting diodes (OLED), while profitability for large displays improved thanks to the increased average sales prices of panels for TVs and monitors.
Samsung forecast that demand for mobile displays would recover in the second half due to the planned launch of new flagship smartphones such as foldable phones.
The consumer electronics unit logged an operating profit of 1.06 trillion won (925.8 million U.S. dollars) on revenue of 13.4 trillion won (11.7 billion U.S. dollars).
Overall market demand for TVs was higher in the second quarter from a year ago on the expanded sale of premium products and the global sporting events, including the Tokyo Olympics.
The company predicted an improved demand for TVs in the second half due to stronger seasonality.
The IT & mobile communications division posted an operating profit of 3.24 trillion won (2.8 billion U.S. dollars) on revenue of 22.67 trillion won (19.8 billion U.S. dollars).
Overall market demand for mobile phones decreased in the second quarter compared to the previous quarter due to the component supply shortage, the production disruption in its Vietnam factory, and weak seasonality.
The mobile phone market was forecast to recover to the pre-pandemic level in the second half as the 5G adoption and contactless trend would continue, Samsung said.
Samsung's capital expenditure in the first half amounted to 23.3 trillion won (20.3 billion U.S. dollars), including 20.9 trillion won (18.3 billion U.S. dollars) for semiconductors and 1.4 trillion won (1.2 billion U.S. dollars) for displays.
Latest comments