Samsung is one of the largest chip makers in the world which puts it in a unique position to understand the complexities of the chip and memory shortage that’s currently affecting everyone from businesses to everyday consumers. With that expertise in the market, Samsung says that it expects the chip shortage to carry into 2028 and beyond. Samsung had previously stated earlier this year that it expected the memory shortage to last until 2027, but an extended chip shortage is likely to push that further.
Samsung is also not the only company close to or directly involved in the industry that is predicting longer time periods for the shortage than most were anticipating when things started. SK hynix, another large name in the chip business, expects the memory shortage to last until at least 2030. Xiaomi, on the other hand, is betting on an early market rebound. Samsung also previously stated back in May that the worst of this shortage was ahead.
Despite the chip shortage, Samsung’s chip division posted 70% operating profits
The chip shortage may be hitting just about everyone but Samsung has been able to boost operating profits because of this. According to Reuters, Samsung recorded a 70% operating profit for its chip division in the most recent quarter. This was a record for the company.
This led to Samsung posting an operating profit that was 250-fold over the same time the previous year. Bumping up to a total operating profit of 89.2 trillion won, or $61.7 billion in USD. However, Samsung’s chip success isn’t being shared by the entire company. The chip division is seeing record profit margins, but Samsung’s phone division is suffering because the chip success. Leading to Samsung’s first-ever quarterly loss, totaling 700 billion won.
Despite losses in the mobile division, Samsung’s success in its chip division has kept the companies overall operating profits high and resulted in huge increases.
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