Samsung’s Chip Division Sees Profit Plunge of 42%

Samsung's Chip Division Sees Profit Plunge of 42%

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Samsung's Chip Division Sees Profit Plunge of 42%

On April 30, Samsung Electronics announced its latest financial report, revealing that both its operating profit and revenue exceeded analysts’ expectations, driven by increased sales of its flagship Galaxy S25 smartphones and improvements in its memory chip business.

The South Korean company recorded a record revenue of 79.1 trillion won in the first quarter, a 10% year-on-year increase, surpassing analysts’ forecast of 78.1 trillion won; while Samsung’s operating profit for the first quarter was 6.7 trillion won, a 1.5% year-on-year increase, also exceeding the analysts’ prediction of 6.4 trillion won.

The first quarter revenue slightly exceeded Samsung’s previous forecast of 79 trillion won, and the operating profit was also above the company’s expected 6.6 trillion won.

Samsung Electronics reported a slight increase in operating profit for the first quarter, attributed to customers purchasing smartphones and general chips out of concern for U.S. tariffs, which mitigated the impact of poor performance in its AI chip business. Samsung did not provide a profit outlook for the current quarter, citing macroeconomic uncertainties due to trade tensions and global growth slowdown. Samsung expects that if these uncertainties diminish, performance will improve in the second half of the year.

In different business segments, Samsung’s mobile devices and network business saw a profit increase of 23% in the first quarter, reaching 4.3 trillion won, the highest level in four years, thanks to the AI features in the latest flagship Galaxy S series smartphones.However, the chip division’s operating profit was 1.1 trillion won, a 42% year-on-year decline.Samsung stated that it expects strong demand for AI servers in the current quarter and plans to accelerate the production of its enhanced 12-layer HBM3E chips during this period.

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