Samsung reports 'major' progress in supply deal for AI chips

Samsung Electronics has reported advancement connected a awesome proviso woody for artificial intelligence-focused chips, aiming to reassure investors pursuing a slowdown successful semiconductor profits during nan past quarter

SEOUL, South Korea -- Samsung Electronics connected Thursday reported advancement connected a awesome proviso woody for artificial intelligence-focused chips, aiming to reassure investors pursuing a slowdown successful semiconductor profits during nan past quarter.

The South Korean exertion elephantine said its operating profit for nan July-September play accrued by much than 277% from a twelvemonth earlier to 9.18 trillion won ($6.65 billion). But nan fig represented a 12% diminution from nan 2nd quarter, which Samsung attributed mostly to one-off costs, specified arsenic proviso of worker incentives successful its machine spot business, and nan effects of a weaker U.S. dollar.

Samsung’s semiconductor section earned 3.86 trillion won ($2.8 billion) successful operating profit during nan quarter, rebounding from a shortage during 2023 but sharply declining from nan 6.45 trillion won ($4.67 billion) it reported successful nan April-June period.

While Samsung saw coagulated request for AI and server chips during nan past quarter, its mobile spot business weakened arsenic immoderate customers adjusted inventories. The marketplace was besides affected by Chinese manufacturers’ accrued proviso of bequest representation products, nan institution said successful a statement.

More critically, Samsung lagged down cardinal competitors specified arsenic SK Hynix successful HBM3E, nan latest procreation of precocious bandwidth representation chips that are utilized to powerfulness AI applications.

During a convention call, Samsung Executive Vice President Jaejune Kim said nan institution precocious made a “meaningful advance” successful a qualification trial process to supply its HBM3E products to an unspecified “major client,” a improvement he said could perchance thrust up income during nan 4th quarter. Kim’s comments touched disconnected speculation that Samsung was closing successful connected a proviso woody pinch Nvidia, a awesome U.S. shaper that designs precocious chips powering AI.

“In nan 4th quarter, while representation request for mobile and PC whitethorn brushwood softness, maturation successful AI will support request astatine robust levels. Against this backdrop, nan institution will ore connected driving income of high-bandwidth representation and high-density products,” Samsung said.