By Jihye Shin and Matthew Walsh
Seoul (AFP) April 30, 2026
Samsung Electronics mentioned Thursday that working revenue soared 750 % on-year to a report excessive within the first quarter because of sturdy 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 sturdy 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 US and China.
Samsung mentioned in its earnings report on Thursday it had “achieved report quarterly income and working revenue by AI expertise improvements and proactive market response”.
It mentioned working revenue got here in at 57.2 trillion gained ($38.4 billion), having mentioned earlier within the month that it anticipated to succeed in a quarterly report.
Internet revenue hit 47.1 trillion gained, beating forecasts in a Bloomberg survey of analysts, whereas gross sales reached 133.9 trillion gained, an all-time quarterly excessive.
Its chips division additionally beat expectations with an enormous rise in revenue to 53.7 trillion gained, accounting for the majority of the unit’s complete.
The corporate mentioned its reminiscence arm “surpassed its quarterly gross sales report 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 “sturdy reminiscence demand to proceed” by 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 conflict, saying “semiconductor manufacturing strains are at the moment working usually”.
“Danger is low because of secured logistics routes and diversified buying and selling companions within the US, Japan, and different areas,” he mentioned.
South Korea’s benchmark Kospi inventory index jumped to a contemporary report above 6,700 factors following the figures, which got here after sturdy earnings from US tech giants Microsoft and Alphabet.
Samsung’s shares have been down in morning buying and selling.
– Driving the AI wave –
Samsung’s shares have risen round 300 % over the previous 12 months because the AI increase boosts South Korean development and pushes the inventory market to new data.
The corporate has seen sturdy 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 client electronics — threatening increased costs for telephones, laptops and different gadgets worldwide.
Nevertheless, Samsung faces dangers from a threatened strike subsequent month as staff demand increased pay and bonuses.
Tens of hundreds of unionised employees 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 bunch of unions representing practically 90,000 staff in complete have mentioned 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 mentioned.
The corporate additionally faces a lawsuit in the US alleging that it violated patents associated to foldable smartphone expertise by making and promoting Galaxy Z Fold, Z Flip, and Z TriFold gadgets with out permission, based on court docket paperwork.
SK hynix mentioned final week web revenue had soared nearly 400 % to a report excessive within the first quarter.
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