Samsung's Semiconductor Profits Plummet Amid Struggles in AI Chip Market
18 Sources
[1]
Samsung Witnesses a Whopping 40% QoQ Decline In Semiconductor Profits, As They Struggle To Capitalize On AI Boom
Samsung Foundry has witnessed a massive blow, as the division reports a whopping 40% QoQ decline in profitability, creating massive troubles for the Korean giant. Samsung's financial troubles aren't finishing just yet, as after reporting a massive strike to its HBM business, the Korean giant is
[2]
Samsung falls short of expectations as chipmaker fails to reap AI benefits
Samsung Electronics reported an operating profit of Won3.9tn ($2.8bn) from its chip division in the third quarter, falling far short of analyst estimates and behind its South Korean rival SK Hynix, as the world's biggest memory-chip maker failed to take full advantage of the artificial intelligence
[3]
Samsung's Q3 profit from chips remains at $2.8 bil., as non-memory biz declines
Samsung Electronics' office in Seocho District, Seoul / Yonhap Chipmaker drops hints at possible HBM supply to NvidiaBy Nam Hyun-woo Samsung Electronics' operating profit from its semiconductor business in the third quarter of this year stood at 3.86 trillion won ($2.8 billion), falling short of
[4]
Samsung Q3 operating profits soar to $6.6 bn, miss forecast
Seoul (AFP) - South Korea's Samsung Electronics said Thursday that its operating profits soared 277 percent on-year to $6.6 billion but missed expectations as it struggled to leverage demand for chips used in artificial intelligence servers. The world's largest memory chip maker posted an
[5]
Samsung's semiconductor division, lagging behind rivals in AI chips, reports a 40% drop in profit from the previous quarter
South Korea's Samsung Electronics said Thursday that its operating profits soared 277% on-year to $6.6 billion, but missed expectations as it struggled to leverage demand for chips used in artificial intelligence servers. The world's largest memory chip maker posted an operating profit of 9.18
[6]
Samsung's Chip Business Sags Even as Profit Beats Expectations -- Update
Samsung Electronics reported sharply lower earnings in its flagship semiconductor business despite better-than-expected net profit overall for the third quarter. The mixed results come as the South Korean technology giant faces the twin challenge of catching up with industry rivals in supplying
[7]
Samsung's Q3 2024 profits soar YoY despite chip woes
Samsung has reported its earnings for Q3 2024 that ended September 30, 2024 in which the company posted 79.1 trillion won (USD 57.34 billion approx.) consolidated revenue, up 17.35% YoY, and up 6.79% QoQ, slightly above its own expectations. It made an operating profit of 9.18 trillion won (USD
[8]
Samsung Rises After Signalling Progress With Nvidia on AI Memory
Samsung must try to secure a meaningful market share alongside SK Hynix Samsung Electronics Co. declared progress in supplying its most advanced AI memory chips to Nvidia Corp., offering some reassurance to investors who fear the company's falling further behind SK Hynix Inc. in a red-hot
[9]
Samsung Profit Beats Expectations but Chip Business Sags
Samsung Electronics reported better-than-expected net profit for the third quarter, but its core semiconductor business earnings shrank sharply from the previous quarter. The mixed results come as the South Korean technology giant faces the twin challenge of catching up with industry rivals in
[10]
Samsung posts weaker profit recovery as it misses out on AI boom
Samsung Electronics reported a higher profit for the third quarter compared to last year, albeit with a slower recovery pace. The company faces challenges in monetizing the AI boom amid competition from TSMC and SK Hynix. Its chip division saw a decrease in profits, and the mobile devices business
[11]
Samsung reports 'major' progress in supply deal for AI chips
SEOUL, South Korea (AP) -- Samsung Electronics on Thursday reported progress on a major supply deal for artificial intelligence-focused chips, aiming to reassure investors following a slowdown in semiconductor profits during the last quarter. The South Korean technology giant said its operating
[12]
Samsung reports 'major' progress in supply deal for AI chips
SEOUL, South Korea (AP) -- Samsung Electronics on Thursday reported progress on a major supply deal for artificial intelligence-focused chips, aiming to reassure investors following a slowdown in semiconductor profits during the last quarter. The South Korean technology giant said its operating
[13]
Samsung reports 'major' progress in supply deal for AI chips
SEOUL, South Korea -- Samsung Electronics on Thursday reported progress on a major supply deal for artificial intelligence-focused chips, aiming to reassure investors following a slowdown in semiconductor profits during the last quarter. The South Korean technology giant said its operating profit
[14]
Samsung Reports 'Major' Progress in Supply Deal for AI Chips
SEOUL, South Korea (AP) -- Samsung Electronics on Thursday reported progress on a major supply deal for artificial intelligence-focused chips, aiming to reassure investors following a slowdown in semiconductor profits during the last quarter. The South Korean technology giant said its operating
[15]
Samsung posts weaker profit recovery as it misses out on AI boom
SEOUL, Oct 31 (Reuters) - Samsung Electronics (005930.KS), opens new tab said its third-quarter profit jumped from a year earlier, but the pace of recovery weakened from the prior quarter as it struggles to cash in on the AI boom that has benefited chip rivals like TSMC (2330.TW), opens new tab and
[16]
Sluggish chip sales curtail Samsung's profits, worrying investors - SiliconANGLE
Sluggish chip sales curtail Samsung's profits, worrying investors Samsung Electronics Co. Ltd.'s third quarter profit jumped by 73% from a year earlier, but although that number sounds good, it wasn't nearly enough to satisfy investors. That's because the pace of acceleration was significantly
[17]
Samsung Profits Soar, But Company's Nvidia AI Chip Race Lag Allows SK Hynix, Micron To Take The Lead In High-Bandwidth Memory - Micron Technology (NASDAQ:MU), SK Hynix (OTC:HXSCF)
Samsung Electronics SSNLF, South Korea's largest company, reported a net income of 9.78 trillion won ($7.1 billion) for the September quarter, with its chip division earning 3.86 trillion won ($2.8 billion) in operating profit. Artificial intelligence and data center server demand remained strong,
[18]
Samsung posts weaker profit recovery as it misses out on AI boom
SEOUL (Reuters) - Samsung Electronics said its third-quarter profit jumped from a year earlier, but the pace of recovery weakened from the prior quarter as it struggles to cash in on the AI boom that has benefited chip rivals like TSMC and SK Hynix. The world's biggest maker of memory chips,
Share
Copy Link
Samsung Electronics reports a significant 40% quarter-over-quarter decline in semiconductor profits, highlighting its challenges in capitalizing on the AI chip boom and competing with rivals like SK Hynix.
Samsung's Q3 Financial Performance
Samsung Electronics, the world's largest memory chip maker, reported a significant increase in year-over-year operating profits for Q3 2024, rising 277% to 9.18 trillion won ($6.6 billion)
4
. However, this figure fell short of market expectations and represented a 12% decrease from the previous quarter4
. The company's overall revenue reached a record high of 79.1 trillion won ($57.2 billion), marking a 17.35% year-on-year growth1
4
.Semiconductor Division Struggles
The company's semiconductor division, particularly its Device Solutions (DS) department, faced considerable challenges. It reported an operating profit of 3.86 trillion won ($2.8 billion), which was below analyst estimates and represented a sharp 40% decline from the previous quarter
1
2
5
. This underperformance was attributed to several factors:- Reduced inventory valuation gains
- Provisions for incentives
- Unfavorable currency exchange rates
- One-off costs in the chip-making division
3
AI Chip Market Challenges
A significant factor in Samsung's semiconductor struggles is its difficulty in capitalizing on the artificial intelligence (AI) chip boom. The company has been lagging behind its domestic rival, SK Hynix, in the production of high-bandwidth memory (HBM) chips used in AI hardware
2
5
. Samsung has faced setbacks in passing quality tests for Nvidia's AI processors, hindering its ability to secure major customers in the AI sector1
3
.HBM Progress and Future Outlook
Despite these challenges, Samsung remains optimistic about its future in the AI chip market:
- The company reported a 70% quarter-over-quarter growth in HBM revenue
3
. - Mass production of 8-layer and 12-layer HBM3e chips has begun
3
. - Samsung claims to have made "significant progress" in quality testing with a major client, likely referring to Nvidia
3
. - The company expects HBM3e to account for more than 50% of its total HBM sales in Q4 2024
1
3
. - Plans for developing and mass-producing the sixth-generation HBM4 by the second half of 2025 were announced
3
.
Related Stories
Market Response and Company Actions
The market has responded negatively to Samsung's performance, with the company's share price falling more than 30% from its July peak
2
. In response to the situation:- Samsung issued a rare public apology, acknowledging the "crisis" and pledging to overcome it
4
5
. - The company announced plans to reduce staff in some of its Asian operations
4
5
. - Samsung intends to focus investments on HBM and other advanced memory chips while scaling down investments in its foundry business
3
.
Industry Outlook
While Samsung faces challenges, the overall demand for AI chips remains robust. The company expects AI-driven demand to keep memory demand at high levels in the fourth quarter
4
. However, analysts remain skeptical about Samsung's ability to quickly regain competitiveness in the HBM market, with some expecting potential executive changes in the near future2
.References
Summarized by
Navi
Related Stories
Samsung Faces Challenges in AI Chip Race as Profits Decline
31 Jan 2025•Business and Economy
Samsung's Q2 Earnings Reveal Chip Division Struggles Amid AI-Driven Recovery Hopes
31 Jul 2025•Business and Economy
Samsung Faces AI Chip Crisis: Apologizes for Disappointing Profit and Production Delays
08 Oct 2024•Business and Economy
Recent Highlights
1
OpenAI Solves Navier-Stokes Problem With AI, Sparking Existential Crisis in Mathematics
Science and Research
2
OpenAI Reveals AI Models Hiding Mistakes and Taking Unauthorized Actions in 6 New Misalignment Cases
Technology
3
OpenAI AI Agents Attack RubyGems With 2,000+ Malicious Packages, Attempt API Key Theft
Technology
Recent Highlights
Today's Top Stories
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Follow topics that matter to you and stay ahead.
