The logo of Samsung Electronics is seen at its office building in Seoul, South Korea South Korea, October 11, 2017. REUTERS/Kim Hong-Ji/File Photo GLOBAL BUSINESS WEEK AHEAD
Samsung's chip contract manufacturing business, which competes with Taiwan Semiconductor Manufacturing Co , has also seen sharply improved profitability from the previous quarter to reach an operating margin between 10% and 20% due to more deliveries and higher prices, analysts said. Samsung's overall Q4 chip profit is likely to reach 9.7 trillion won, more than double the previous year's 3.85 trillion won, according to an average forecast of five analysts.For Samsung's mobile business, which was recently merged into a single Device Experience division with TV and home appliances, analysts said shipments likely rose slightly from the previous quarter due to easing component shortages.
Market participants will be tuning into Samsung's full results later this month for any updated impact on its Xian NAND flash chip manufacturing facilities, after the company said it would temporarily adjust operations there due to strict COVID-19 curbs in the Chinese city. Data firm TrendForce said last week Samsung's Xian plant was manufacturing without significant disruptions for now.Reporting by Joyce Lee; Editing by Miyoung Kim and Stephen CoatesSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.