Samsung Electronics, South Korea’s largest company, has announced its financial results for the third quarter of 2024. The company reported a net income of 9.78 trillion won ($7.1 billion), with its chip division contributing significantly to its profitability.
The chip division of Samsung Electronics recorded an operating profit of 3.86 trillion won ($2.8 billion) during the September quarter. The strong demand for artificial intelligence and data center servers played a crucial role in driving the division’s performance. However, mobile chip sales experienced a decline due to inventory adjustments.
One factor impacting Samsung’s mobile chip sales was the delay in obtaining certification from NVIDIA Corp for its AI memory chips. This delay allowed competitors SK Hynix and Micron Technology Inc to gain an advantage in the high-bandwidth memory market. SK Hynix recently posted a record profit of 7.03 trillion won, intensifying the competitive pressure on Samsung in the rapidly evolving memory chip industry.