Chip de­mand fu­els Sam­sung earn­ings

Austin American-Statesman - - BUSINESSBRIEFING -

Busi­ness is boom­ing at Sam­sung Elec­tron­ics Co. Ltd., which re­ported a sec­ond-quar­ter op­er­at­ing profit of $4.1 bil­lion, up 87 per­cent from a year ago as sales rose 14 per­cent.

The re­sults, which beat an­a­lysts es­ti­mates, were fu­eled by strong de­mand for me­mory chips go­ing into ev­ery­thing from com­put­ers to smart phones, ac­cord­ing to re­ports from Bloomberg News. The world’s largest seller of com­puter me­mory chips, Sam­sung is a ma­jor sup­plier to Ap­ple Inc. and to Round Rock-based Dell Inc.

Im­prov­ing busi­ness con­di­tions for the elec­tron­ics in­dus­try have prompted Sam­sung to spend more for busi­ness ex­pan­sion. Part of that in­creased spend­ing was the $3.6 bil­lion ex­pan­sion of its north­east Austin chip fac­tory, which was an­nounced last month.

Sam­sung em­ploys about 1,000 peo­ple in Austin and said the ex­pan­sion would cre­ate an­other 500 jobs here by next year.

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