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Samsung’s Chip Division Sees 40% Profit Drop in Q3 as Sales Hit Record High

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Well-known member
Amid concerns on its HBM progress and yield issues on advanced nodes, Samsung has released its full Q3 2024 financial results, with the quarterly revenue reaching KRW 79.1 trillion won (approximately $57.35 billion), hitting an all-time high. However, its semiconductor business remains lackluster, as the DS Division recorded a quarterly operating profit of 3.86 trillion won, marking a 40% decline from the previous quarter.

According to a report by CNBC, while demand for memory chips driven by AI and traditional server products provided some support, Samsung noted that “inventory adjustments negatively impacted mobile demand.” The company also highlighted challenges with “the increasing supply of legacy products in China.”

Samsung continues to face challenges in its most advanced wafer foundry processes. According to TrendForce, the company has yet to solidify its reputation as a reliable partner for cutting-edge nodes, which may hinder its ability to secure orders from top IC design houses and potentially delay its efforts to expand capacity.

Amid concerns on its HBM progress and yield issues on advanced nodes, Samsung has released its full Q3 2024 financial results, with the quarterly revenue reaching KRW 79.1 trillion won (approximately $57.35 billion), hitting an all-time high. However, its semiconductor business remains lackluster, as the DS Division recorded a quarterly operating profit of 3.86 trillion won, marking a 40% decline from the previous quarter.

According to a report by CNBC, while demand for memory chips driven by AI and traditional server products provided some support, Samsung noted that “inventory adjustments negatively impacted mobile demand.” The company also highlighted challenges with “the increasing supply of legacy products in China.”

Samsung continues to face challenges in its most advanced wafer foundry processes. According to TrendForce, the company has yet to solidify its reputation as a reliable partner for cutting-edge nodes, which may hinder its ability to secure orders from top IC design houses and potentially delay its efforts to expand capacity.

 
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