By Jihye Shin and Matthew Walsh
Seoul (AFP) April 30, 2026
Samsung Electronics stated Thursday that working revenue soared 750 p.c on-year to a document excessive within the first quarter because of robust gross sales of chips essential for synthetic intelligence, and forecast continued wholesome demand within the subsequent three months.
The South Korean expertise big has emerged as a key participant — together with rival SK hynix — within the provide of high-performing chips in demand from corporations racing to maintain up with the fast-evolving AI {industry}.
Their robust efficiency has come because the South Korean authorities has pledged to make the nation one of many world’s prime three AI powers alongside the USA and China.
Samsung stated in its earnings report on Thursday it had “achieved document quarterly income and working revenue via AI expertise improvements and proactive market response”.
It stated working revenue got here in at 57.2 trillion received ($38.4 billion), having stated earlier within the month that it anticipated to achieve a quarterly document.
Internet revenue hit 47.1 trillion received, beating forecasts in a Bloomberg survey of analysts, whereas gross sales reached 133.9 trillion received, an all-time quarterly excessive.
Its chips division additionally beat expectations with an enormous rise in revenue to 53.7 trillion received, accounting for the majority of the unit’s whole.
The corporate stated its reminiscence arm “surpassed its quarterly gross sales document by addressing high-value-added AI demand regardless of restricted provide availability, with industry-wide reminiscence worth will increase additionally a contributing issue”.
It added that it anticipated “robust reminiscence demand to proceed” via the second quarter because the buildout of AI infrastructure continues apace.
Chief monetary officer Park Quickly-cheol disregarded issues about provide chain disruption as a result of Center East battle, saying “semiconductor manufacturing strains are at present working usually”.
“Danger is low resulting from secured logistics routes and diversified buying and selling companions within the US, Japan, and different areas,” he stated.
South Korea’s benchmark Kospi inventory index jumped to a contemporary document above 6,700 factors following the figures, which got here after robust earnings from US tech giants Microsoft and Alphabet.
Samsung’s shares had been down in morning buying and selling.
– Driving the AI wave –
Samsung’s shares have risen round 300 p.c over the previous 12 months because the AI growth boosts South Korean development and pushes the inventory market to new data.
The corporate has seen robust orders from main expertise corporations for high-bandwidth reminiscence — a sort of chip utilized in information centres and AI “accelerators”, that are helpful in finishing up demanding duties and computation.
That can also be pushing up the price of much less flashy chips utilized in shopper electronics — threatening increased costs for telephones, laptops and different units worldwide.
Nonetheless, Samsung faces dangers from a threatened strike subsequent month as employees demand increased pay and bonuses.
Tens of hundreds of unionised workers held a rally final week exterior the corporate’s plant in Pyeongtaek, south of Seoul, to name for a seven-percent wage hike, the tip of a cap on bonuses and different advantages.
A bunch of unions representing practically 90,000 employees in whole have stated they’ll stage a strike from Could 21 to June 7 until a take care of administration is reached.
The corporate will “reply to the fullest extent inside the authorized scope… to make sure that manufacturing is just not disrupted even when a strike happens”, Park stated.
The corporate additionally faces a lawsuit in the USA alleging that it violated patents associated to foldable smartphone expertise by making and promoting Galaxy Z Fold, Z Flip, and Z TriFold units with out permission, in line with courtroom paperwork.
SK hynix stated final week internet revenue had soared nearly 400 p.c to a document excessive within the first quarter.
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