Samsung profits jump by more than 900% on chips

Samsung Electronics Co Ltd reported on Thursday a more than 900% surge in quarterly profits, fueled by its semiconductor business and strong demand for its chips.

The South Korean tech giant said its operating profits for the January-March period rose to 9.3 trillion won ($8.32 billion), up from 903 billion won in the same period a year earlier.

Samsung’s semiconductor business was the main driver of the profit surge, with the division posting a 3.4 trillion won operating profit, up 60% from a year earlier. The company’s memory chip business also saw strong demand, particularly from data centers and smartphones.

The company’s smartphone business, however, continued to face challenges due to the global chip shortage and increased competition from Chinese rivals.

Despite these challenges, Samsung remains optimistic about its future prospects, with plans to invest heavily in its semiconductor business and expand its presence in emerging technologies such as 5G and artificial intelligence.

Investors have responded positively to the news, with Samsung’s stock price rising by more than 3% following the earnings report.