Seoul, South Korea – Samsung Electronics, the world’s largest memory chipmaker, announced a sharp decline in its fourth-quarter operating profit, which fell to $4.5 billion for the October-December period. The drop comes as global demand for semiconductor chips, particularly those used in artificial intelligence (AI) applications, continues to fluctuate.
Despite the quarterly setback, the company’s profits showed a significant year-on-year increase of 130%, signaling a partial recovery from earlier challenges. Samsung had previously warned of an industry “crisis” driven by rapid technological advancements and shifting market dynamics.
Total revenue for the quarter rose by 11.8% to 75.7 trillion won ($63.7 billion), while net profits grew by 22.2%, supported by steady demand for consumer electronics and improved supply chain efficiency. However, industry analysts note that Samsung faces mounting pressure from Chinese competitors and unpredictable demand for AI-driven semiconductors.
In response to these challenges, Samsung remains committed to innovation, emphasizing its focus on advancing high-performance chip technology. The company expressed optimism about its long-term growth prospects, citing ongoing investments in research and development.
As the semiconductor industry navigates a complex landscape, Samsung’s performance in the coming quarters will be closely watched by investors and industry observers alike.