[SEOUL] Samsung Electronics said on Thursday it expects chip profits to increase in the current quarter after announcing its highest first-quarter operating profit since 2018.

The world's top maker of memory chips posted a 46 per cent jump in operating profit in the January-March quarter on the back of a 66 per cent profit surge at its mobile business to 4.4 trillion won (S$5.26 billion), the company said.

The jump was led by sales of its flagship Galaxy S21 smartphone series, while profit also soared at its television set and home appliance business, buoyed by continued stay-at-home demand.

Profits at its chip business, however, fell due to the cost of ramping up domestic production as well as losses at its Texas plant following a storm-related stoppage in mid-February that blunted the benefits of strong demand.

Net profit rose 46 per cent to 7.1 trillion won. Revenue climbed 18 per cent to 65.4 trillion won.

REUTERS

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL