Samsung Reviews a 10-fold Improve in Revenue as AI Drives Rebound in Reminiscence Chip Markets – The Diplomat

Samsung Electronics on Tuesday reported a 10-fold enhance in working revenue for the final quarter because the enlargement of synthetic intelligence applied sciences drives a rebound within the markets for laptop reminiscence chips.

The South Korean semiconductor and smartphone large mentioned its working revenue for the January-March quarter got here in at 6.6 trillion gained ($4.8 billion), up from the 640 billion gained ($465 million) it earned throughout the identical interval final yr.

Income rose by almost 13 p.c to 71.9 trillion gained ($52 billion), pushed by larger costs for reminiscence chips and sturdy gross sales of its flagship Galaxy S24 smartphones, the corporate mentioned.

The corporate earned 1.91 trillion gained ($1.38 billion) in working revenue from its semiconductor enterprise, marking the division’s first quarterly revenue because the fourth quarter of 2022, because the chip market continues to get well from a cyclical droop deepened by the COVID-19 pandemic and world commerce tensions.

Samsung projected the reminiscence chip market to stay sturdy within the coming months, pushed by the enlargement of generative AI applied sciences, which is growing the demand for each standard chips utilized in servers and superior chips designed to course of AI, together with high-bandwidth reminiscence, or HBM.

Responding to larger calls for for AI chips, Samsung mentioned it began this month the mass manufacturing of its newest HBM chips, referred to as 8-layer HBM3E, and that it plans to start out producing the 12-layer model of the chips in the course of the second quarter.

“Within the second half of 2024, enterprise situations are anticipated to stay constructive with demand — primarily round generative AI — holding sturdy, regardless of continued volatility referring to macroeconomic tendencies and geopolitical points,” Samsung mentioned in a press release.

For smartphones, the corporate will proceed to deal with boosting the gross sales of its flagship machine, Galaxy S24, which is constructed with an array of latest options enabled by AI, together with reside translation throughout telephone calls in 13 languages and 17 dialects.

Samsung mentioned it plans to broaden AI options past the S24 to different cellular units because it expects the applied sciences to drive progress within the smartphone market in coming months amid enhancements in world client spending.