South Korean Samsung sees a 10-fold jump in profits due to the recovery of memory chips Technology news

The South Korean tech giant reported profits of $4.85 billion during the first three months of 2024.

Samsung Electronics reported a nearly 10-fold jump in its first-quarter operating profit amid a rebound in its core memory chip business.

The technology giant, the main subsidiary of Samsung Group, South Korea's largest family-controlled conglomerate, said operating profits rose to 6.61 trillion won ($4.85 billion) in the first three months of the year on the back of strong sales of its flagship Galaxy phone. S24 smartphone and memory semiconductor prices rise.

Total revenues rose to 71.9 trillion won ($52 billion), an increase of nearly 13%.

The world's largest memory chip maker said revenue was also supported by a weaker won against the dollar, which boosted profits by about 0.3 trillion won.

β€œIn the second half of 2024, business conditions are expected to remain positive with demand – primarily around generative AI – remaining strong, despite ongoing volatility related to macroeconomic trends and geopolitical issues,” the company said in a statement.

Samsung shares rose 1.6 percent in morning trading, compared to a 0.5 percent rise in South Korea's benchmark index.

Samsung's strong financial results, which came in ahead of market expectations, follow a decline in memory chip sales amid a slowdown in the global economy.

Semiconductors are one of the most important components of the global economy.

Thin integrated circuits are essential to most modern technology, and are used in everything from kitchen appliances and mobile phones to cars and weapons.

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