Samsung Electronics has announced a staggering increase in its second-quarter operating profits, forecasting a rise of more than 15-fold year-on-year. The South Korean tech giant attributes this surge to rebounding chip prices and soaring demand for generative AI technologies.

As the flagship subsidiary of the Samsung Group, Samsung Electronics anticipates its operating profits for April-June to reach 10.4 trillion won ($7.54 billion), marking a remarkable 1,452.2 percent increase from 670 billion won in the same period last year. This projection exceeds expectations by 25.8 percent, according to South Korea's Yonhap news agency.

Sales are also expected to rise by 23.3 percent to 74 trillion won, underlining the robust recovery in semiconductor demand, which plays a critical role across various sectors from consumer electronics to automotive and AI systems.

The surge in demand for advanced chips, particularly those powering AI applications like Samsung's own generative AI products, has been a significant driver. Avril Wu from TrendForce highlighted the role of high-capacity SSDs in AI development, where Samsung's expertise in non-volatile storage is a major advantage.

Semiconductors remain a cornerstone of South Korea's exports, reaching $11.7 billion in March, the highest level in nearly two years, contributing a fifth of the country's total exports, according to trade ministry data.

In a move to bolster its semiconductor capabilities further, Samsung secured grants from the United States to produce cutting-edge chips in Texas. This initiative aligns with the company's strategy to maintain leadership in global semiconductor markets.

Beyond chips, Samsung regained its top position in global smartphone sales in April, surpassing Apple, according to International Data Corporation (IDC). The company is set to unveil its latest flagship foldable smartphones in Paris, equipped with advanced AI features and innovative accessories like a health-monitoring "smart ring".

Looking ahead, analysts foresee continued momentum for Samsung, driven by both semiconductor advancements and the premiumization trend in the smartphone market. The company's strong financial position, supported by a substantial net cash position, enhances its credit quality, according to Moody's Ratings.

Samsung is scheduled to release its detailed earnings report by the end of this month, expected to provide further insights into its robust performance and strategic outlook for the remainder of the year.

Samsung Electronics' remarkable performance in the second quarter underscores its leadership in semiconductor technology and AI-driven innovation. With strong projections for profits and sales, Samsung is poised to capitalize on growing global demand while reinforcing its market position across key sectors, setting a promising trajectory for future growth and development.