Samsung chip division shows significant improvement with an estimated operating profit of 4.6 trillion won compared to the same period last year.
South Korean tech giant Samsung achieved unexpected success in the second quarter of 2024. The company increased its operating profit by 13 times compared to the same period last year, reaching record levels. The estimated operating profit rose from 670 billion won (approximately $6.34 billion) to 8.8 trillion won. This result marks Samsung’s highest profit since the third quarter of 2022.
Key Drivers of Success
Artificial intelligence-powered chips and high demand were the main drivers of Samsung’s massive success this quarter. The demand for DRAM and NAND Flash chips, used in tech devices, pushed their prices up by 13% to 20% in the second quarter. The company’s CEO emphasized ongoing investments in technology to ensure the sustainability of this success.
Improved Chip Division Performance
Samsung’s chip division demonstrated significant improvement with an estimated operating profit of 4.6 trillion won, compared to the same period last year. However, the mobile division might have experienced a decline in operating profit due to high component costs and increased development expenses for AI services.
Industry Trends and Challenges
Technology analysts noted a rapid increase in demand for AI chips used in data centers and smartphones. This trend positively impacts earnings not just for tech giant, but for the entire industry.
Despite the success, tech giant faces potential challenges with a possible three-day strike expected to start next week. The workers’ union demands a more transparent system for leave and bonuses. The company is carefully navigating labor management and production continuity during this period.
Source: https://www.cioupdate.com.tr/haberler/samsung-ikinci-ceyrekte-karini-13-kat-artirdi/
