Samsung Reports 10-Fold Increase in Profit as AI Drives Chip Demand

Samsung Electronics reported a 10-fold increase in operating profit for the first quarter of 2023, driven by robust demand for memory chips used in artificial intelligence applications. The company’s operating profit soared to 6.5 trillion won ($5 billion), up from 600 billion won a year earlier. Revenue rose 21% to 63.7 trillion won ($49.3 billion). The semiconductor business, which accounted for two-thirds of Samsung’s profit, saw operating profit jump to 4.6 trillion won ($3.6 billion) from 600 billion won a year earlier. The company cited strong demand for memory chips used in AI applications and servers. Samsung expects the AI semiconductor market to continue growing rapidly, fueling demand for high-performance memory chips. However, the company warned of potential risks from global economic uncertainties and rising material costs.

Source: https://abcnews.go.com/Business/wireStory/samsung-reports-10-fold-increase-profit-ai-drives-109772518