Samsung Electronics said Thursday that its semiconductor production lines are operating normally and that it has seen no supply chain disruptions since the outbreak of the war in the Middle East.
Speaking on a conference call for its 2026 first-quarter earnings release, the company addressed concerns about possible disruptions in supplies of semiconductor raw materials as the conflict drags on.
Samsung said it imports process gases from parts of Israel and the Middle East, but has secured safety stock and is responding based on local logistics conditions. It added that risks remain low because it has alternative logistics routes and a diversified supplier base, including partners in the United States and Japan.
On power supply, Samsung said it is closely monitoring utility cost trends tied to rising international oil prices and plans to maintain a stable power supply system through close cooperation with the government.
The company cautioned, however, that higher oil prices linked to the war are pushing up global sea and air logistics costs, expanding the risk of freight rate increases.
To limit the impact, Samsung said it is closely monitoring global inventory levels and optimizing supply chain operations to reduce the cost burden from international transport. It said it is also preparing multiple scenarios in case the war is prolonged, and plans to strengthen its ability to manage volatility while maintaining cost competitiveness and supply capacity through measures such as long-term contracts with logistics firms and fuel-linked freight rates.
* This article has been translated by AI.
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