Samsung Electronics, a leading South Korean semiconductor and smartphone giant, reported a significant tenfold increase in operating profits for the last quarter. This surge was primarily fueled by the expansion of artificial intelligence (AI) technologies, which led to a rebound in the computer memory chip markets. The company’s operating profit for the January to March quarter skyrocketed to 6.6 trillion won (US$4.8 billion), a substantial rise from 640 billion won ($465 million) recorded in the same period last year. This remarkable growth was supported by higher memory chip prices and robust sales of its flagship Galaxy S24 smartphones, contributing to a nearly 13 percent increase in revenue to 71.9 trillion won ($52 billion).
Samsung’s semiconductor business marked a significant milestone, earning 1.91 trillion won ($1.38 billion) in operating profit, marking its first quarterly profit since the fourth quarter of 2022. The recovery in the chip market, coupled with increased demand for advanced chips designed for AI processing like high-bandwidth memory (HBM) and conventional server chips, played a pivotal role in this achievement. Responding to the heightened demand for AI chips, Samsung initiated mass production of its latest HBM chips, the 8-layer HBM3E, with plans to introduce the 12-layer version in the second quarter of the year. Looking ahead, Samsung anticipates positive business conditions in the second half of 2024, with strong demand expected for generative AI technologies despite ongoing macroeconomic and geopolitical uncertainties.
Samsung emphasized its commitment to leveraging AI advancements in its products, particularly highlighting features in its flagship Galaxy S24 device. These features include live translation during phone calls in 13 languages and 17 dialects, showcasing Samsung’s dedication to innovation and meeting evolving consumer demands in the AI-driven tech landscape.