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Samsung Electronicssaidon Tuesday that its operating profit surged more than 930 % in the first quarter of 2024 , driven by soaring demand for its server , memory fleck and storage used in AI applications .
The company , whichstruggled in 2023 as the macroeconomic slowdown injure demand for its products , said its computer storage chip business returned to profitableness , and cost continued to ascend , thanks to solid requirement for DRAM and NAND chips , high - denseness SSDs and servers .
Samsung read full tax income increased 12.8 % to KRW 71.2 trillion ( $ 52.2 billion ) in the one-quarter from a year in the beginning , while net profit rose 330 % to KRW 6.75 trillion ( $ 4.88 billion ) compared to a year to begin with . operate earnings increased to KRW 6.61 trillion ( $ 4.77 billion ) in the one-fourth from KRW 640 billion ( about $ 462 million ) a year originally .
Samsung ’s semiconducting material business drive the mass of the betterment , withsales in the partitioning rising to KRW 23.14 trillion ( $ 16.71 billion ) in the first one-quarter , up from KRW 13.73 trillion ( $ 9.92 billion ) a year earlier , driven by strong demand for DDR5 chips and storage used for AI server . The class reported an operating profit of KRW 1.91 trillion ( $ 1.3 billion ) in the quarter , compared to an operating release of KRW 4.58 trillion ( $ 3.3 billion ) in the first stern of 2023 , and an operating personnel casualty of KRW 2.18 trillion ( $ 1.57 billion ) in the quaternary quarter of 2023 .
Mass production plans in 2024
Samsung has been keen on catering to the increasing compute power needs of reproductive AI and the servers ask to host the mountains of data that models are trained on . The party last twelvemonth say it would double down on producinghigh - bandwidth memory(HBM ) bit that are used in AI , 5 G , the cyberspace of Things ( IoT ) , lifelike processing coating , virtual reality and augment reality systems . These chips provide faster data processing and blue power ingestion compared to the traditional NAND memory chip .
In line with that ambitiousness , Samsung on Tuesday suppose it has begun mass - producing high - performance memory chips , like HBM3E 8H ( 8 - layer ) DRAM , as well as V9 NAND chips , typically usedin enterprise server , AI and cloud devices . The society say it also intend to produceHBM3E 12H(12 - level ) chips in the 2nd quarter of this twelvemonth .
Samsung is the world ’s big memory scrap maker and competes with Micron and SK Hynix , a Korean computer memory chip shaper , in the food market for HBM chips . Micronkicked offits mass production of 8 - layer HBM3E semiconducting material in February , and last calendar month atNvidia ’s GTC 2024 , SK Hynixsaid it had also started mass producing HBM3Echips .
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As for its foundry business , Samsung said its development of 3 - nanometer and 2 - millimicron AI splintering is “ progressing smoothly . ”
Optimistic forecast
Samsung anticipate demand will persist firm in the second one-half of this class , buoyed by increasing adoption of generative AI .
“ In the 2nd half of 2024 , business conditionsare expectedto rest positive with requirement — mainly around generative AI — holding stiff , despite bear on volatility relating to macroeconomic trends and geopolitical issues , ” the troupe say in a statement .
“ For servers and reposition , the uninterrupted increase in the supply of AI servers and subsequent expansion of associated cloud services will increase demand not only for HBM , but also for established waiter and storage solutions . need for mobile is wait to be stable in the after part , while personal computer customers are forebode to be affected by dumb seasonality , making them likely to adjust their stock-taking ahead of novel production launch in the second half of the year , ” the company say .
Two weeks ago , theBiden governing agreedto award Samsung up to $ 6.4 billion in direct support under the CHIPS and Science Act to set up semiconductor machine manufactory in Texas .
The subsidization will activate the South Korean electronic giant star to develop leading - edge chips by vest in two new logic chip plants , an R&D facility , an innovative publicity adroitness in Taylor , and its exist installation expansion near Austin . MicronandTSMCalso are set to meet grant to bolster domesticated semiconductor output .
Samsung stretch cut in memory scrap yield , will focalize on gamey - final stage AI chips instead
US to present TSMC $ 6.6B in grants , $ 5B in loan to ill-treat up potato chip manufacturing in Arizona
