Samsung Electronics forecast a record semiconductor sales for the third quarter and a strong 2007 on firmer computer memory chip demand.

"The market for DRAM will be even better in the second half, and will be very good in 2007," said Hwang Chang-gyu, president of Samsung's semiconductor business, referring to dynamic random access memory chips, commonly used in personal computers.

Samsung posted record quarterly chip sales of 5.09 trillion won ($5.3 billion) in the fourth quarter of 2005.

Revenue of over 5 trillion won would be slightly better than expectations," said Lim Hong-bin, an analyst at Mirae Asset Securities. "But profit figures are more important."

Samsung booked a 1.62 trillion won operating profit for the semiconductor division in the last quarter of 2005.

"Samsung is more likely to post record chip revenue in the fourth quarter than in the third," said Lee Min-hee, an analyst at Dongbu Securities. Lee expects the semiconductor division to post a 1.7 trillion won operating profit in the third quarter and 2 trillion in the fourth.

Hwang said Samsung was able to fill only about 70 percent of orders due to improved demand for DRAM and added he expected the shortfall to continue through 2007.

By: DocMemory
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