Samsung Electronics has announced progress on a significant supply deal for artificial intelligence-focused chips, seeking to reassure investors after a slowdown in semiconductor profits in the last quarter. The South Korean tech giant reported that its operating profit for the July-September period surged by over 277% from a year earlier to 9.18 trillion won ($6.65 billion). However, this figure marked a 12% decline from the second quarter, primarily due to one-off costs like providing employee incentives in its computer chip business and the impact of a weaker U.S. dollar.
During the quarter, Samsung's semiconductor division recorded an operating profit of 3.86 trillion won ($2.8 billion), bouncing back from a deficit in 2023 but significantly lower than the 6.45 trillion won ($4.67 billion) reported in the April-June period. While the demand for AI and server chips remained strong, the mobile chip business weakened as some customers adjusted inventories. The market was also affected by increased supply of legacy memory products from Chinese manufacturers.
