April 19, 2024

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[THE INVESTOR] Semiconductor powerhouses Samsung Electronics and SK hynix are expected to post all-time high profits in the second half of this year, thanks to robust chip sales, according to analysts on Sept. 29.

Market research firm FnGuide forecast that Samsung will rake in 14.3 trillion won (US$12.50 billion) operating profit in the third quarter, up 1.9 percent from the second quarter, with its revenue standing at 61.8 trillion won, up 1.3 percent.

The research firm predicted that the tech giant will see its operating profit further grow to 15.8 trillion won in the fourth quarter this year.

“Samsung has set a record operating profit every quarter and the momentum is highly likely to continue,” said Kim Woon-ho, an analyst from IBK Securities.

Also riding the momentum in global chip sales, SK hynix, the world’s second largest DRAM marker after Samsung, is forecast to reap around 3.8 trillion won in operating profit in the third quarter and cross 4 trillion won in the next.

The global memory chip industry has recently been enjoying a boom thanks to a surge in demand. The memory chips, including DRAM and NAND, are crucial components in smartphones and data servers.

Market analysts also consider the ongoing acquisition deal of Japanese tech firm Toshiba’s memory business unit will serve as a boon rather than a burden for the semiconductor business of SK Group.

“The planned acquisition of the Toshiba unit will not pose a financial burden on SK hynix, which has cash reserves of 5.1 trillion won as of the second quarter and free cash flow of 5.8 trillion won,” said Kim Gyeong-min, an analyst from Daeshin Investment & Securities.

The Japanese tech giant signed a deal on Sept. 27 to sell its memory business to a consortium which includes US private equity firm Bain Capital, and tech firms Apple and Dell.

SK hynix, a member of the consortium, will chip in 395 billion yen (US$3.50 billion) in the 2-trillion-yen acquisition deal.

By Kim Young-won (wone0102@heraldcorp.com)