SEOUL — Samsung Electronics Co. announced on Wednesday a dramatic increase in its second-quarter operating profit, which surged more than fifteen-fold due to a robust recovery in its semiconductor business.
According to Yonhap News Agency, the tech giant's operating profit reached 10.44 trillion won (US$7.54 billion) in the April-June period, a significant rise from 668.5 billion won a year earlier. This marked the first time Samsung Electronics has posted an operating profit exceeding 10 trillion won in seven quarters, dating back to the third quarter of 2022. The company's sales saw a 23.4 percent increase to 74.06 trillion won, while net profit soared 471 percent to 9.84 trillion won, surpassing market expectations. Analysts had predicted an operating profit of 10.29 trillion won, based on a survey by Yonhap Infomax.
The semiconductor division of Samsung Electronics, which has been underperforming for more than a year, recorded 28.6 trillion won in sales and an operating profit of 6.45 trillion won for the quarter. This return to profitability after five consecutive quarters of losses was driven by strong demand for memory chips, used in artificial intelligence servers and solid-state drives. Additionally, the company’s mobile and other devices segments posted 42.7 trillion won in sales and 2.7 trillion won in operating profit. Samsung also highlighted its substantial investments in research and development and facilities, spending 8.05 trillion won and 12.1 trillion won, respectively, in these areas during the quarter.