Samsung Electronics raises over $4.6 bn in chip sales in Q2

[Photo by Kim Ho-young]

Samsung Electronics Co. saw its operating profit surge by more than 1,400 percent in the second quarter from the same period a year ago on strong chip sales.

Samsung Electronics said in a regulatory filing on Wednesday that its preliminary operating profit for the second quarter reached 10.4 trillion won ($7.5 billion), up 1,462.29 percent from the same period a year ago.

The operating profit is 1.5 percent above the market consensus of 10.2 trillion won compiled by Yonhap Infomax.

It is also the first time since the third quarter of 2022 (10.85 trillion won) that Samsung Electronics‘ quarterly operating profit has surpassed 10 trillion won.

Second-quarter revenue was up 23.44 percent to 74.07 trillion won, remaining above 70 trillion won for two straight quarters.

Net profit was 9.84 trillion won, up 470.97 percent, the company said.

The Device Solutions (DS) division, which handles semiconductors, reported revenue of 28.56 trillion won and an operating profit of 6.45 trillion won.

The memory segment benefited from the continued market recovery thanks to strong demand for generative AI server products and increased demand for DDR5 and high-capacity SSD products in the enterprise server market.

The System Large Scale Integration (LSI) division saw a rise in the supply of system-on-chip (SoC) and image sensor products for major clients, achieving the highest sales for the first half of the year.

In the foundry business, a rise in orders for advanced 5-nanometer and below processes led to a roughly twofold increase in the number of customers in the AI and high-performance computing (HPC) sectors compared to the previous year.

The Device Experience (DX) division recorded revenue of 42.07 trillion won and an operating profit of 2.72 trillion won.

The Mobile Experience (MX) division saw its revenue decline compared to the first quarter due to the smartphone market’s off-season.

However, shipments and revenue for the S24 series in the second quarter and the first half of the year both showed double-digit growth compared to the previous year.

Samsung Electronics’ facility investment for the second quarter totaled 12.1 trillion won, with 9.9 trillion won allocated to semiconductors and 1.8 trillion won to displays.