Seoul, April 30: Samsung Electronics reported a more than fivefold increase in net profit for the first quarter, supported by strong demand for high-end memory chips used in artificial intelligence (AI) applications.
Net profit for the quarter ended March rose to 47.22 trillion won (approximately $31.8 billion), compared with 8.22 trillion won a year earlier. Operating profit surged over eightfold to 57.23 trillion won, while revenue climbed 69.2% to 133.87 trillion won, reflecting broad-based growth across its semiconductor business.
The company attributed the record performance to robust sales of high-margin AI chips and improving memory prices within its device solutions division. Additionally, a weaker Korean won against the U.S. dollar contributed around 1.8 trillion won to operating profit.
Looking ahead, Samsung expects continued momentum in the second quarter, driven by sustained global investment in AI infrastructure. Major technology players such as Meta Platforms and Amazon are accelerating spending on data centres and related hardware, supporting demand for advanced memory solutions.
To capitalise on this trend, Samsung plans to expand supply of next-generation high bandwidth memory (HBM4) chips this year. The company is also exploring multiyear supply agreements to stabilise pricing and mitigate cyclical volatility in the semiconductor market.
However, Samsung faces potential operational risks from labour unrest. Its unionised workforce has threatened an 18-day general strike starting May 21, seeking a share of annual operating profit as part of compensation. While some analysts caution that a prolonged strike could disrupt production, others expect the impact to be limited given the high level of automation in semiconductor manufacturing.
Overall, Samsung’s strong quarterly performance underscores its positioning at the centre of the AI-driven semiconductor upcycle, even as it navigates emerging labour challenges.
