The South Korean expertise large has emerged as a key participant — together with rival SK hynix — within the provide of high-performing chips in demand from firms 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 high three AI powers alongside the USA and China.
Samsung stated in its earnings report on Thursday it had “achieved file quarterly income and working revenue by way of 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 file.
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 file by addressing high-value-added AI demand regardless of restricted provide availability, with industry-wide reminiscence value will increase additionally a contributing issue”.
It added that it anticipated “robust reminiscence demand to proceed” by way of the second quarter because the buildout of AI infrastructure continues apace.
Chief monetary officer Park Quickly-cheol dismissed considerations about provide chain disruption because of the Center East conflict, saying “semiconductor manufacturing strains are at present working usually”.
“Threat is low attributable to 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 recent file 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.
– Using the AI wave –
Samsung’s shares have risen round 300 % over the previous yr because the AI growth boosts South Korean progress and pushes the inventory market to new data.
The corporate has seen robust orders from main expertise companies 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 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 outdoors the corporate’s plant in Pyeongtaek, south of Seoul, to name for a seven-percent wage hike, the top of a cap on bonuses and different advantages.
A gaggle of unions representing practically 90,000 employees in whole have stated they are going to stage a strike from Could 21 to June 7 except a take care of administration is reached.
The corporate will “reply to the fullest extent throughout the authorized scope… to make sure that manufacturing will not be 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 keeping with courtroom paperwork.
SK hynix stated final week web revenue had soared nearly 400 % to a file excessive within the first quarter.
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