SEOUL: Samsung Electronics Co says the tight supply of chips that’s hurting industries worldwide is set to persist through next year, as it reported quarterly profit boosted by rising prices at its semiconductor business.

       The South Korean giant, both a major producer and consumer of chips that go into computers and mobile devices, said net income rose to 12.06 trillion won (US$10.3bil or RM42.79bil) in the three months ended September.

       Samsung disclosed preliminary numbers earlier this month, including a more than 25% increase in operating profit.

       The world’s biggest maker of memory chips and smartphones has benefited from strong demand as the global economy recovers from the Covid-19 pandemic, with a resulting shortage boosting semiconductor prices.

       While Samsung and its chipmaker rivals are spending more to add production capacity, the crunch isn’t abating soon as consumers and companies continue to invest in technology.

       “The pandemic led global consumers to experience more online-based social activities and lifestyles – which has been called the new normal – and we think most of the demand of the new normal will persist as a fundamental part of our life,” JinMan Han, executive vice-president of Samsung’s chip business, said on a conference call yesterday.

       The company didn’t give forecasts for earnings or investment for 2022 because of uncertainties including supply bottlenecks and rising raw-material prices.

       Meanwhile, memory-chip prices may start to cool this quarter as customers are less anxious to place new orders after stockpiling inventories. — Bloomberg