Samsung attributes significant part of sales increase to memory chips

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The South Korean Samsung has announced in the publication of its quarterly figures that a large part of its turnover in the last quarter of 2017 comes from the sale of dram and nand. It made a record profit last year.

The company writes that demand for the chips for servers and mobile storage has been strong. The chip division’s total profit for the whole of 2017 amounted to 35.2 trillion won, which is approximately 24.4 billion euros. Samsung’s total profit for the whole of 2017 is 53.65 trillion won, which is converted to 40.2 billion euros. If you only look at the fourth quarter of last year, the profit came to 11.4 billion euros, of which the chip department accounted for about two thirds. According to Bloomberg, Samsung has surpassed Intel in the field of chips when it comes to turnover in the past year.

Samsung expects demand for nand to continue in the coming year and says it will expand production of 64-ply nand at its Pyeongtaek plant. The demand for dram would also continue to grow due to the construction of data centers. The South Korean manufacturer also reports that more deliveries of OLED panels for high-end smartphones have taken place. Samsung expects these types of panels to become mainstream among smartphone makers in 2018. It says it wants to focus on the release of bendable, or foldable, OLED panels.

On the mobile front, Samsung wants to sell more high-end products and expects higher sales with the release of its new Galaxy S9 smartphone. When announcing its quarterly results, the company also announced a stock split; shares are split into fifty parts. The company says it has received requests for such action because the high share price would be a barrier to potential investors.

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