Samsung's Q1 Profits Soar 10-Fold Amid AI Chip Market Boom
May 1, 2024Samsung Electronics Co reported a substantial increase in Q1 operating profit, reaching 6.6 trillion won compared to 640 billion won the previous year.
Revenue also increased by 12.8 percent to 71.9 trillion won.
The semiconductor division recorded its first quarterly profit since 2022, with a 1.91 trillion won operating profit.
Samsung attributes the strong performance to the growth of artificial intelligence technologies and the recovery of the chip market.
Plans are underway to incorporate advanced AI features into the upcoming Galaxy S24 smartphones to drive sales.
The company expects the memory chip market to remain robust due to rising demand for AI capabilities.
Samsung secured up to $6.4 billion in funding from the Biden administration to build semiconductor factories in Texas.
Investments in cutting-edge 3nm and 2nm chip production technologies are in progress, targeting the production of 2nm chips by 2025 to support the growing AI industry.
Summary based on 13 sources
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Sources
TechSpot • May 1, 2024
Samsung on cloud nine after 933% Q1 profit jump, thanks to AI wave台北時報 • May 1, 2024
Samsung’s Q1 operating profit up 10-fold annuallyLight Reading • Apr 30, 2024
Samsung profit up tenfold on soaring AI chip demandTech Xplore • Apr 30, 2024
Samsung says Q1 operating profits soar nearly tenfold on-year