Date
21 October 2017
Samsung is expected to report its best-ever quarterly profit for the three months to June. Photo: Bloomberg
Samsung is expected to report its best-ever quarterly profit for the three months to June. Photo: Bloomberg

Samsung poised to take Intel’s chip crown

Samsung Electronics Co. is poised to knock Intel off the top of the global semiconductor market-share rankings as it prepares to report its second-quarter performance. 

The South Korean firm is expected to post its best-ever quarterly profit in the three months to June, with soaring memory chip sales pushing it past Intel as the biggest semiconductor maker by revenue for the first time, Reuters reports.

Samsung is a huge beneficiary of soaring demand for processing firepower on smartphones and servers, which has fueled an industry super-cycle amid limited supply growth.

Underscoring its dominant position, Samsung said on Tuesday that it plans to invest some US$18.6 billion in South Korea as it seeks to extend its lead in memory chips and next-generation displays for smartphones.

The tech giant, Asia’s third-largest company by market capitalization, is now set to emerge as the top chipmaker in the world, knocking Intel off its pedestal.

Samsung’s April-June operating profit is expected to leap 67 percent from a year earlier to 13.1 trillion won (US$11.4 billion), a new high, according to the average forecast from a Thomson Reuters survey of 18 analysts.

The same survey expects July-September profit to be even higher at 13.8 trillion won.

Solid sales of the Galaxy S8 smartphone launched in April likely provided an additional boost, keeping the firm ahead of rival Apple Inc, as the world’s top smartphone maker.

The S8′s performance has reassured investors whose nerves were shaken last year by the costly withdrawal of Samsung’s premium Galaxy Note 7 due to fire-prone batteries.

Samsung shares have gained 30 percent so far this year on top of a 43 percent surge in 2016, Reuters noted.

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