Samsung’s Woes: Saved by the Chips

The Economist on Samsung’s plunging profits:

Samsung seems to have a different plan, however. It is betting that its chip business, which has done well in the third quarter, will provide more of its growth. On October 6th the firm announced that it will spend nearly $15 billion on a new semiconductor plant in South Korea to meet the growing demand for processors in mobile devices. Although the decline of its smartphone business will not be an existential threat to Samsung, it remains to be seen whether making chips will replace all the profits it has lost.

Ironic in the way that Microsoft profits from Android, Samsung is a major component supplier for Apple, and thus profits from the sale of iPhones.

★ Thursday, 9 October 2014