Samsung Electronics estimates that its operating profit increased by 52.5% in the fourth quarter. The reason is that strong demand for server memory chips and an increase in contract chip manufacturing orders have contributed to the hope of a rebound in semiconductor prices.

In the quarter ended December, the world’s largest computer chip and smartphone manufacturer’s operating profit was expected to be 13.8 billion won (11.5 billion U.S. dollars), but lower than Refinitiv’s forecast of 1.52 billion won, partly due to special bonuses to employees . Sales are estimated to be Won76tn, an increase of 23.5% over the same period last year.

The revenue of this Korean company is May increase further Analysts said that after bottoming out in the first quarter of this year. Chip prices are expected to rebound in the second quarter, partly due to production cuts at Samsung’s factory in Xi’an, China, which is under the Covid-19 lockdown.

“Due to the reduction in supply from the Xi’an plant, chip prices may fall less than expected in the first quarter and will start to rebound in the second quarter,” said CW Chung, head of research at Nomura in Seoul.

After Micron Technology announced stronger-than-expected quarterly earnings last month and predicted record revenue for the 2022 fiscal year, Samsung issued optimistic profit guidance. Samsung will announce detailed earnings later this month.

Anticipation of a rebound in chip prices Brief downturn In recent months, Samsung’s stock price has risen by more than 10% due to the surge in demand for data centers and streaming services following the renewed global outbreak of the new crown virus. Samsung shares rose 1.8% on Friday morning.

Samsung, which competes with foundry chip maker TSMC, has also benefited from the increase in orders for its foundry business, which manufactures semiconductors for third parties.But the global non-memory chip crunch Everything from the car The mitigation of consumer electronics products has been slower.

Analysts said that Samsung has won work orders for the two years until 2023, and estimates that the division’s operating profit margin will reach 10% to 20%.The company also plans to invest $17 billion for new U.S. factories Used for contract chip manufacturing.

Cape Investment & Securities analyst Park Sung-soon said in a recent report: “External risks such as Covid-19’s comeback and component shortages still exist, but the worst seems to have passed.” “The company may be this year. We see that OEM orders from major customers continue to increase.”

The analyst said, Xi’an closed city The price environment for Dram and Nand flash memory chips is improving, prompting suppliers to postpone negotiations due to expected price increases. The Dram chip supports short-term storage of graphics, mobile and server chips, while the Nand flash memory chip allows files and data to be stored in the event of a power failure.

According to TrendForce’s data, Samsung has two production lines in Xi’an, accounting for 42.5% of its total Nand flash memory output.

Analysts also predict that as the shortage of parts alleviates, Samsung’s mobile revenue will increase.the company’s Foldable phone This year’s sales may double or triple, reaching 15-20 million units, as it expects smartphone shipments to exceed 300 million units, an increase of about 10% over last year.