Samsung is making slightly lower losses in the chip sector due to growing demand for AI chips

Samsung Electronics has announced its quarterly results. The company’s profit fell by 95 percent for the second quarter in a row from a year earlier. According to Samsung, this is mainly due to the loss-making chip sector, although slightly less losses have been recorded in this division due to the growing demand for AI chips.

Samsung’s Device Solution division, which is responsible for chip production, posted a loss of 4.36 trillion won, or 3.1 billion euros, in the past quarter. let Samsung know. In the second quarter of 2023, a profit of 7.1 billion euros was recorded in this sector. According to Samsung, the losses are not unexpected, because there is still little demand for chips from consumers due to the ongoing economic uncertainty. However, the loss was slightly lower than the 4.58 trillion won of the previous quarter. According to Samsung, this is due to a growing demand for memory chips for AI servers.

Samsung says demand for chips will gradually recover from the second half of the year. However, the company continues to maintain the previously announced production cuts of memory chips, as Samsung believes that growing demand in the short term will largely come from data center chips for artificial intelligence, according to Reuters.

In the current quarter, Samsung made a profit of 0.67 trillion won, which is approximately 476.96 million euros. That is approximately 40 million euros more than the previous quarter. Then Samsung reported its lowest profit since 2009. The company also recorded a turnover of 42.7 billion euros, which is 6 percent lower than the turnover of the first quarter of 2023.