By Jihye Shin and Matthew Walsh
Seoul (AFP) April 30, 2026
Samsung Electronics stated Thursday that working revenue soared 750 % on-year to a report excessive within the first quarter because of robust gross sales of chips essential for synthetic intelligence, and forecast continued wholesome demand within the subsequent three months.
The South Korean know-how big has emerged as a key participant — together with rival SK hynix — within the provide of high-performing chips in demand from corporations racing to maintain up with the fast-evolving AI {industry}.
Their robust efficiency has come because the South Korean authorities has pledged to make the nation one of many world’s high three AI powers alongside the USA and China.
Samsung stated in its earnings report on Thursday it had “achieved report quarterly income and working revenue by AI know-how improvements and proactive market response”.
It stated working revenue got here in at 57.2 trillion gained ($38.4 billion), having stated earlier within the month that it anticipated to achieve a quarterly report.
Internet revenue hit 47.1 trillion gained, beating forecasts in a Bloomberg survey of analysts, whereas gross sales reached 133.9 trillion gained, an all-time quarterly excessive.
Its chips division additionally beat expectations with an enormous rise in revenue to 53.7 trillion gained, accounting for the majority of the unit’s complete.
The corporate stated its reminiscence arm “surpassed its quarterly gross sales report by addressing high-value-added AI demand regardless of restricted provide availability, with industry-wide reminiscence value will increase additionally a contributing issue”.
It added that it anticipated “robust reminiscence demand to proceed” by the second quarter because the buildout of AI infrastructure continues apace.
Chief monetary officer Park Quickly-cheol disregarded considerations about provide chain disruption because of the Center East conflict, saying “semiconductor manufacturing traces are presently working usually”.
“Danger is low on account of secured logistics routes and diversified buying and selling companions within the US, Japan, and different areas,” he stated.
South Korea’s benchmark Kospi inventory index jumped to a recent report above 6,700 factors following the figures, which got here after robust earnings from US tech giants Microsoft and Alphabet.
Samsung’s shares had been down in morning buying and selling.
– Using the AI wave –
Samsung’s shares have risen round 300 % over the previous yr because the AI growth boosts South Korean progress and pushes the inventory market to new data.
The corporate has seen robust orders from main know-how corporations for high-bandwidth reminiscence — a kind of chip utilized in knowledge centres and AI “accelerators”, that are helpful in finishing up demanding duties and computation.
That can also be pushing up the price of much less flashy chips utilized in client electronics — threatening greater costs for telephones, laptops and different gadgets worldwide.
Nonetheless, Samsung faces dangers from a threatened strike subsequent month as staff demand greater pay and bonuses.
Tens of hundreds of unionised employees held a rally final week exterior the corporate’s plant in Pyeongtaek, south of Seoul, to name for a seven-percent wage hike, the tip of a cap on bonuses and different advantages.
A gaggle of unions representing almost 90,000 staff in complete have stated they’ll stage a strike from Could 21 to June 7 until a take care of administration is reached.
The corporate will “reply to the fullest extent inside the authorized scope… to make sure that manufacturing shouldn’t be disrupted even when a strike happens”, Park stated.
The corporate additionally faces a lawsuit in the USA alleging that it violated patents associated to foldable smartphone know-how by making and promoting Galaxy Z Fold, Z Flip, and Z TriFold gadgets with out permission, based on courtroom paperwork.
SK hynix stated final week web revenue had soared virtually 400 % to a report excessive within the first quarter.
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