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Samsung sees 53 per cent growth in quarterly profit amid chip shortage

TECHNOLOGY major Samsung Electronics said it expects the company’s quarterly profit to grow 53 per cent amid a global chip shortage.

The world's biggest memory-chip and smartphone maker has forecast an operating profit of £8 billion for the quarter ending June, as strong demand for memory chips is likely to offset weaker sales of devices.


Since the beginning of the pandemic, demand for electronics components has surged as people shifted more of their lives online.

The upbeat projection by Samsung signals continued strength for the technology industry.

In recent months, computer chip makers have attained much power to increase their prices due to the historic supply crunch.

Last month, Samsung's co-chief executive and mobile chief, Koh Dong-jin told shareholders, "There's a serious imbalance in supply and demand of chips in the IT sector globally."

The global chip shortage also affected car industry, with major manufacturers around the world being forced to halt production at several times.

In recent months, auto brands including Ford, General Motors, Volkswagen and Jaguar Land Rover have all suspended their production lines.

To counter this global shortage, las month, US president Joe Biden and European commissioner Margrethe Vestager unveiled plans to manufacture more computer chips in Europe and the US.

To boost chip-manufacturing, the EU promised an allocation of $150bn (£108bn), while US announced a sum of $52bn (£37.3bn) for domestic chip manufacturing.

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UK houses

UK house price growth slows to 0.3 per cent in October.

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UK house price growth slows as buyers delay decisions ahead of budget

Highlights

  • Average UK house price rose 0.3 per cent in October to £272,226, down from 0.5 per cent growth in September.
  • Annual house price growth edged up to 2.4 per cent, with market remaining resilient despite mortgage rates being double pre-pandemic levels.
  • Buyers delaying purchases amid speculation that November budget could introduce new property taxes on homes worth over £500,000.
British house prices grew at a slower pace in October as buyers adopted a wait-and-see approach ahead of the government's budget announcement on 26 November, according to data from mortgage lender Nationwide.

The average house price increased by 0.3 per cent month-on-month in October to £272,226, down from a 0.5 per cent rise in September. Despite the monthly slowdown, annual house price growth accelerated slightly to 2.4 per cent, up from 2.2 per cent in the previous month.

Robert Gardner, Nationwide's chief economist, said the market had demonstrated broad stability in recent months. "Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all-time highs".

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