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Samsung Posts Record Q4 Driven By Chip Demand For Gaming

  • Samsung posted record revenue in Q4 2021.
  • The world’s largest chipmaker generated $63.7 billion during the quarter.
Samsung/Design: Alex Brooks

Samsung posted record fourth-quarter revenue driven by a demand for its computing chips, which help power much of the video game industry. 

The Korean tech giant generated $63.7 billion in revenue in Q4 2021, up from $55.33 billion for the same period the year prior. The world’s largest chipmaker reported record revenue despite challenges linked with supply chain issues and COVID, which are expected to continue.  

Full-year revenue reached a record $232.5 billion, up from $212.82 billion in FY2020. 

Samsung has been proactive in establishing a presence in the gaming and chip industries. 

  • In 2020, the company won a contract to produce chips for gaming company Nvidia.
  • Last June, it announced that it will be working with AMD to make graphics chips.
  • It pledged to invest $206 billion over the next three years, with a focus on chipmaking. 

Samsung has been willing to spend more than its competitors to improve its semiconductor business. The company reported an industry-leading $36.3 billion in semiconductor capital expenditure in FY2021 due to the acquisition of tools to expand chip and memory production. 

An Eye On Fitness

Last August, Samsung said it would upgrade the chip in its Galaxy Watch series, which includes the fitness-focused Galaxy Active line. The company has planned to build a new $17 billion semiconductor factory outside of Austin, Texas, to facilitate production of its computing products.

Construction begins this year on the factory, which is slated to open in 2024.

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