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Samsung may become the world’s largest chip maker

Revenue increased to 60 trillion won in the second quarter from 50.94 trillion won registered a year ago. He expects Samsung’s third-quarter operating profit to exceed 15 trillion won.The company projects operating profit of about 14.00 trillion Korean won in the second-quarter, compared to 8.14 trillion won reported previous year.The earnings forecast surpassed a market consensus of around 13.2 trillion won compiled by FnGuide, a financial information service provider.The world’s largest memory chip maker is the among the biggest beneficiaries of soaring demand for processing firepower on smartphones and servers, which has fuelled an industry super-cycle amid limited supply growth.The rising demand for flexible OLED products and increased LCD panel prices also helped the South Korean tech giant to enjoy strong earnings, they added. Furthermore, the website says that Samsung’s chip division will roll up $25.8 billion in operating profit over the entire year, 65% more than Intel’s expected profit of $17.1 billion.Analysts said Samsung is expected to continue to post strong earnings this year.”Although the chip business is leading the overall performance, the display and smartphone sectors are also performing well”, Kwon added.He projects annual operating profits of 50 trillion won for 2017, up 70 percent from previous year.Shares of Samsung Electronics traded 0.58 percent lower at 2,389,000 won as of 9:00 a.m. Friday.Samsung said on Tuesday it would invest $18.6 billion to extend its lead in memory chips and next-generation displays, a move likely to ease shareholder fears that major decisions were on the backburner while Vice Chairman Jay Y. Lee fights bribery charges in court.Demand for solid-state drives (SSD) and smartphones would maintain profits for producers of NAND semiconductors, despite an easing of a production bottleneck, it said.Refurbished devices – featuring batteries with a slightly smaller capacity – went on sale Friday in South Korea.