Riding high global demand for its AI chips, South Korean tech giant Samsung Electronics reported record quarterly profits on Thursday.
A global AI boom has driven up prices and shipments of conventional chips, while demand for high?The servers that drive the technology need bandwidth memory chips, which have increased dramatically.
There is a shortage of consumer electronics due to the need for chips to run AI, which could result in higher costs for laptops, phones, and other gadgets.
In a statement, Samsung said that in the quarter ending in December last year, it had posted “its highest-ever quarterly consolidated revenue at KRW 93.8 trillion (US$65.5 billion), representing a quarter-on-quarter increase of nine percent”.
“Operating profit was also an all-time high, at KRW 20.1 trillion,” it added.
The company said that its operating profit was 43.6 trillion won and its annual sales was 333.6 trillion won.
Samsung’s Device Solutions division, which manages its semiconductor business and had a 33 percent increase in revenue in the most recent quarter, was credited with the company’s impressive profitability.
Additionally, it reported a “all-time high for quarterly revenue and operating profit” for its memory division.
Samsung promised to keep investing in “transitioning to advanced manufacturing processes and upgrading existing production lines to meet rising demand” and cited a $33.2 billion investment in chip manufacturing facilities.
The South Korean company said it expects “AI and server demand to continue increasing, leading to more opportunities for structural growth”.
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