Samsung Reports 1,800% Profit Surge Driven by Artificial Intelligence Chip Demand

Samsung Electronics reported an operating profit of 6.6tn Korean won (£3.87bn) for the first three months of the year, a substantial 1,800% increase from the same period last year. This marks the company's highest operating profit in four years.

The significant surge is primarily attributed to robust demand for semiconductors, particularly those essential for artificial intelligence applications. Increased demand has driven up chip prices, bolstering Samsung’s revenues. While the company is the world’s largest chipmaker, it faces competition from rivals such as SK Hynix, which has also benefited from the AI boom.

This quarter's performance reverses a trend of declining profits for Samsung, which had been affected by a downturn in the semiconductor industry since 2022. The company, a major player in global electronics manufacturing, also saw a 13% increase in revenue, reaching 71.9tn Korean won (£42.2bn).