Samsung sees strong chip market after third-quarter profit rise
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SEOUL :Samsung Electronics expects continued strength in the chip market, driven by AI demand, it said on Thursday after reporting a 32 per cent rise in third-quarter operating profit, its highest in over three years.
The turnaround of the world's top memory chipmaker reflects the unexpected boom in conventional chip prices, with supply squeezed by the industry's shift to producing advanced AI chips, while demand is rising for data centres.
Samsung's chip business, its main cash cow, posted an operating profit of 7 trillion won ($4.92 billion) in the third quarter, up 80 per cent from a year earlier.
"The semiconductor market is expected to remain strong, driven by ongoing AI investment momentum," Samsung said in a statement.
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The world's largest maker of memory chips posted 12.2 trillion won in operating profit for the July to September period, in line with its estimate of 12.1 trillion won.
Samsung shares were up 2.7 per cent after the results.
"Looking ahead to Q4, the rapid growth of the AI industry is expected to open up new market opportunities," Samsung said.
($1 = 1,421.4800 won)
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