Samsung Electronics, the flagship subsidiary of South Korean conglomerate Samsung Group, reported a staggering 931.8 percent increase in first-quarter operating profits compared to the previous year. The remarkable surge, reaching KRW 6.61 trillion (approximately $4.85 billion), was propelled by a combination of factors, including recovering chip prices and heightened demand.

The company attributed its robust performance to the Memory Business, which rebounded to profitability by meeting the demand for high-value-added products. Sales saw a notable uptick of 12.8 percent year-on-year, totaling 71.9 trillion won, driven by strong sales of flagship Galaxy S24 smartphones and increased prices for memory semiconductors.

Samsung's success in the semiconductor sector was particularly noteworthy, with the company capitalizing on the demand across various segments such as servers, storage, PC, and mobile. Strategic focus on high-value-added products like HBM, DDR5, server SSDs, and UFS 4.0, along with an increase in average selling prices (ASP), contributed significantly to this achievement.

Looking ahead to the second quarter, Samsung anticipates a solid industry performance, primarily driven by the demand for generative AI. Additionally, the weakening of the Korean won against the US dollar positively impacted the company's operating profit by approximately KRW 0.3 trillion compared to the previous quarter.

Samsung's net profit of 6.75 trillion won surpassed market expectations, signaling the company's resilience and adaptability in navigating market dynamics.

Analysts underscored the importance of Samsung's strategic positioning and emphasized the need to accelerate development in emerging areas like High Bandwidth Memory to sustain momentum. The company's ability to capitalize on evolving market conditions and technological advancements bodes well for its continued success.

Semiconductors remain a vital component of the global economy, with demand for advanced chips soaring, particularly in AI applications. South Korean chipmakers, including Samsung, have experienced a resurgence in profitability, indicating a positive outlook for the industry.