In the midst of a gradual rebound in worldwide demand, Samsung Electronics posted its largest quarterly profit of the year on Tuesday. Losses from its computer chip division also decreased.
With the increased demand for its DRAM chips due to the rise of artificial intelligence-based devices and services, as well as the regular replacement cycles of smartphones and PCs, Samsung stated that it anticipates significant improvement in its business in the upcoming months.
In order to meet the demands posed by artificial intelligence, Samsung expects to more than double its production capacity of advanced high-bandwidth memory chips by 2024, according to Jaejune Kim, executive vice president of the company’s memory unit, during a conference call.
The South Korean technology giant has been struggling with low memory chip prices and the global economic fallout from Russia’s war on Ukraine, which has affected its operations. As a result, its 2.43 trillion won ($1.8 billion) operating profit for the three months ended in September was still 77.6% lower than the same period last year. Revenue for the corporation in the most recent quarter was 67.4 trillion won ($50 billion), a 12.2% decrease from the same period last year.
From 4.36 trillion won ($3.2 billion) in the second quarter to 3.75 trillion won ($2.78 billion) for the July–September period, Samsung reported a decrease in operational losses from its semiconductor division.
High-end chips used in artificial intelligence technologies and the return of orders from PC and mobile device manufacturers—who had previously concentrated on reducing their chip inventory while enduring a decline in consumer spending—were cited as the main drivers of the demand improvements.
