Samsung AI chip deal soars despite profit challenges

Despite strong demand for AI and server chips, the mobile chip sector saw a decline
Samsung
Samsung (Photo credit: Bang Media)

Samsung has made advancements in its artificial intelligence chip supply deal.

Amid a downturn in semiconductor earnings in the last quarter, the South Korean giant is working to reassure investors.


Its operating profit for July to September soared by over 277 percent from the previous year to 9.18 trillion won, the country’s official currency. Yet, there was a 12 percent decrease from the second quarter, attributed by Samsung to one-time expenses like employee incentives provision in its computer chip division.

The semiconductor unit reported an operating profit of 3.86 trillion won for the quarter, recovering from last year’s loss.


This is a decrease from the 6.45 trillion won reported in the April to June period.

Despite strong demand for AI and server chips, the mobile chip sector saw a decline as some clients adjusted their inventories. Samsung has fallen behind competitors like SK Hynix in HBM3E, the newest high bandwidth memory chip generation for AI applications. Vice President Jaejune Kim stated that the company has recently achieved a “meaningful advance” in the qualification testing process to supply HBM3E products to a significant but unnamed client, potentially boosting sales in the fourth quarter.

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