Semiconductor manufacturers are doing their best thanks to the crisis: Samsung just made its biggest profits in three years
These are good times for semiconductor manufacturers. We know that their production capacity is stressed by a demand that, according to the executives of these companies, they will not be able to meet. give short-term response. However, there is no doubt that this form of friction benefits them. And it does so because it guarantees that all the integrated circuits that they are capable of manufacturing will be immediately assimilated by the market.
In fact, the major chipmakers, including TSMC, Samsung, Intel, and GlobalFoundries, they work on requestTherefore, all the semiconductors that they manufacture already have an owner when they leave the production chain. For some people it may be shocking to see Intel on this list of companies that make chips for third parties, but Pat Gelsinger has confirmed that the company he leads will strengthen this area of its business thanks to the investments it is making to develop new factories.
For any company it would be a dream to be certain that everything it produces has been sold beforehand. It should even be reassuring to be certain that the growing demand in your market, to which you currently cannot give an answer, guarantees that in the future you will be able to grow with the assurance that the investments that you will have to assume will have a guaranteed economic return. Under these conditions, the stress that the semiconductor crisis is generating for chipmakers seems much more bearable. Holy problem.
Samsung just closed its best quarter in three years
The scenario in which we find ourselves has triggered an inevitable increase in the price of semiconductors. Is what happens when demand is much higher than supply. And this rise, not surprisingly, is causing chipmakers to increase their profit margins. Samsung has just released how its subsidiary specialized in the production of integrated circuits has done during the third quarter of this year, and has closed it with the highest profits of the last three years.
This good result has led this company to close the quarter with profits of $ 13.3 billion. To find a more successful quarter in Samsung’s history we have to go back to the third of 2018. Interestingly, the two components that according to the brand itself have contributed the most to this increase in profits have been memory chips, whose price has increased notably , and AMOLED panels for smartphones.
Samsung has closed the third quarter with profits of 13.3 billion dollars
As is logical, Samsung mounts the panels that it produces on its mobile phones, but also sells them to other manufacturers of terminals. The sale of AMOLED matrices for mobile phones must be as important for this company as it is for Sony the commercialization of the sensors that use a good part of the cameras incorporated in the terminals of the high and premium ranges.
In any case, it seems reasonable to assume that Samsung isn’t the only semiconductor maker doing well thanks to huge demand for chips. I would bet without risking the slightest bit that the other three companies that I mentioned in the second paragraph of this article are also going through a very positive stage from a strictly economic point of view.
Cover Image | TSMC
Via | Reuters