REFILE: FILE: Samsung forecasts profit to triple to record high as it rides AI boom

Record ID: 2374095

  • Title: REFILE: FILE: Samsung forecasts profit to triple to record high as it rides AI boom
  • Date: 7th April 2022
  • Summary: VARIOUS FILMING LOCATIONS, SOUTH KOREA (FILE) (SAMSUNG ELECTRONICS HANDOUT) SAMSUNG ELECTRONICS EMPLOYEES IN PROTECTIVE DUST-PROOF SUITS WALKING STAFF MEMBER LOOKING THROUGH MICROSCOPE MICROSCOPE VARIOUS OF STAFF MEMBER INSPECTING SEMICONDUCTOR CHIPS SEMICONDUCTOR PROCESSING MACHINE SEMICONDUCTOR BEING PROCESSED OVERHEAD CONVEYOR SYSTEM MOVING AT FACTORY VARIOUS OF SEMICON
  • Embargoed:
  • Keywords: AI chips Galaxy Q3 Samsung Samsung Electronics South Korea artificial intelligence chips chip flip fold foldable high-bandwidth memory (HBM) profit result smartphone
  • Location: SEOUL, SUWON, VARIOUS FILMING LOCATIONS, SOUTH KOREA / SAN JOSE, CALIFORNIA, UNITED STATES
  • City: SEOUL, SUWON, VARIOUS FILMING LOCATIONS, SOUTH KOREA / SAN JOSE, CALIFORNIA, UNITED STATES
  • Country: South Korea
  • Topics: Asia / Pacific,Company News Markets,Economic Events
  • Reuters ID: LVA002008507042022RP1
  • Aspect Ratio: 16:9
  • Story Text: Samsung Electronics said on Thursday (January 29) its operating profit more than tripled to a record high in the fourth quarter and forecast strong chip demand ahead, as the race to build artificial intelligence strains chip supply and boosts prices.
    The results underscore the strong pricing power of the world's top memory chipmaker, whose profit growth is expected to accelerate this year.
    "The ongoing AI boom is expected to continue driving favourable market conditions across the industry" in the first quarter of 2026, Samsung said in a statement.
    However, it warned rising memory chip prices are weighing on its smartphone and display business and cautioned there are other lingering risks, such as global tariffs.
    The South Korean company posted 20 trillion won ($13.98 billion) in operating profit for the October to December period, in line with its estimate of 20 trillion won and up from 6.49 trillion won a year earlier.
    It reported revenue of 93.8 trillion won in the quarter, up 24% from a year earlier.
    Operating profit at Samsung's chip business, its main cash cow, surged 470% to a record high 16.4 trillion won in the fourth quarter from a year earlier, while profit at its mobile phone business, squeezed by surging chip prices, declined to 1.9 trillion won.
    Samsung said its mobile business is expected to face rising cost pressures this year. Samsung co-CEO TM Roh described the acute chip shortage as "unprecedented" in an interview with Reuters, adding that he did not rule out raising prices.
    (Production: Minwoo Park)
  • Copyright Holder: FILE REUTERS (CAN SELL)
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