According to the latest report, Samsung Electronics will release its second-quarter performance outlook today, expecting second-quarter revenue to grow by 21%, better than analysts’ expectations, alleviating investor concerns. The biggest worry for investors is that weak consumer demand and soaring material costs will affect the $550 billion chip industry.
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Boosted by the good news, Samsung shares rose as much as 3.2 percent in early Seoul trading, while shares in SK Hynix, another South Korean memory chip maker, rose as much as 3.4 percent. Shares of chip foundry giant TSMC rose as much as 5.4 percent in Taipei today, while smaller rival UMC surged as much as 9 percent.
The market value of the four Asian chipmakers rose by about $30 billion this morning. While their shares have rebounded, they have fallen year-to-date, reflecting uncertainty over the long-term outlook.
“The results were not as bad as expected,” said Song Myung-sup, an analyst at South Korean investment firm HI Investment Securities. “There was a huge concern in the market and Samsung’s earnings forecast was lowered, but the results were within the expected range.”
