Analysts predict that due to strong demand for server memory chips and rising profit margins in OEM manufacturing, Samsung Electronics is expected to announce a record fourth-quarter profit.

According to Reuters, 14 analysts at Refinitiv SmartEstimate analyzed that Samsung Electronics’ operating profit for the quarter ended December 2021 may reach 15.2 trillion won (US$12.7 billion), an increase of 68% from the same period last year, slightly higher than 2017 A record 15.15 trillion won in the fourth quarter of the year.

Samsung Electronics’ stock price has risen about 12% in the past two months, and it is expected that the price of memory chips will rise in 2022 due to new data centers and demand for video, games, conferences and other streaming services. KB Securities analyst Jeff Kim said: "Contrary to previous concerns, the semiconductor industry may see a substantial increase in demand from customers in the memory and non-memory sectors."

In terms of foundry business, "As of December, orders for memory chips from major North American data center companies such as Amazon, Microsoft, and Meta have steadily increased...It is estimated that by 2023, Samsung Electronics' foundry business will receive orders for two years." analysis According to the division, due to the increase in deliveries and price increases, the profitability of Samsung's chip foundry business has also increased significantly compared with the previous quarter, with an operating profit margin of 10%-20%.

According to the average forecast of five analysts, Samsung’s overall chip profit in the fourth quarter may reach 9.7 trillion won, more than double the 3.85 trillion won last year.

For Samsung's mobile business, analysts said that due to the alleviation of component shortages, shipments may increase slightly from the previous quarter. Samsung's mobile business has recently been merged into a separate device experience division, combined with the TV and home appliances business. According to the average forecast of five analysts, the operating profit of the mobile business may be around 3 trillion won, an increase of about 24%.

Samsung Electronics will announce preliminary financial results on the 5th. Investors will learn about Samsung’s overall performance and the latest situation of its Xi’an NAND flash memory chip manufacturing plant later this month. Previously, officials said that the plant had suspended operations due to local epidemic control. But TrendForce said last week that the plant is still in production and there has been no serious interruption.