Reports record quarterly server chip sales in Q1
Smartphone market to continue to grow in H2
To increase portion of cuttingedge chip products

SEOUL, April 28 Reuters Samsung Electronics Co Ltd said on Thursday it expects firm data centre demand for highmargin memory chips to continue in the second half, but warned component shortages will likely persist as well.

The world39;s top memory chip and smartphone maker said underlying server chip demand appears relatively solid as companies boost investments and look to new technologies to increase their business.

Companies are now expanding IT infrastructure, and cloud companies are expanding investments to explore new growth areas like artificial intelligence and machine learning, said Han Jinman, executive vice president of Samsung39;s memory chip business during an earnings call.

However, there are still some parts supply issues, which could lead to disruptions. We39;re going to monitor demand fluctuations very closely and intend to provide supply that fits the demand, he said.

Samsung forecast weaker demand for mobile phone and personal computer chips in Q2 as consumers weather issues such as rising inflation and COVID19 lockdowns, but corporate PC demand is expected to remain solid, while more 5Gcapable phone rollouts in the second half could lift mobile demand.

Memory chip rival SK Hynix offered a similar outlook on Wednesday.

Analysts said Samsung39;s recent focus on selling more highmargin memory products to…