Samsung Electronics flags 53% jump in Q2 profit

Samsung Electronics forecast a 53% jump in profits for the second quarter on Wednesday.

That's thanks to soaring demand for chips and consumer electronics amid the global health crisis.

The world's largest memory chip and smartphone maker said second-quarter profit was likely around $11 billion, well above estimates by Refinitiv.

With prices still strong, analysts expect third-quarter profit to be even higher.

If confirmed later this month, it would be the tech giant's biggest second-quarter profit since 2018.

Analysts say Samsung's chip profits likely also improved as operations at a storm-hit factory in Texas returned to normal.

The company's memory chip sales helped offset a steep fall in another part of its business, smartphones - the same forces giving chips a boost are hitting phones, with key components of electronics in shortage.

Add to that, shipping of its mobile devices took a hit from fresh waves of the global health crisis in India, a key market, and Vietnam, where some of Samsung's factories lie.

It also faces competitors like U.S. memory chip maker Micron, which reported quarterly profits above Wall Street estimates last month.

Samsung is likely to address chip profitability on an earnings call when it releases detailed figures later this month.