Samsung Reports Improved Quarterly Profit as Chip Losses Decrease, Expects DRAM Demand Rise in 2024 Due to Increased On-Device AI Functions

Despite 78% decline in Q3 profit year-on-year, Samsung sees gradual recovery in chip market, responding to AI-driven DRAM demand with plans to double production of high-bandwidth memory chips in 2024; mobile division also reports positive results backed by strong sales of new foldable smartphones.

Samsung's Q3 2023 profit reached 2.43 trillion won ($1.80 billion), a decline of 77.6% YoY, but higher than both Q1 and Q2 2023 profits which saw 640 billion won ($475 million) and 670 billion won ($497 million) respectively.
Samsung's Device Solutions (DS) division, which includes its memory and foundry businesses, narrowed its losses from 4.36 trillion won ($3.23 billion) in Q2 2023 to 3.75 trillion won ($2.77 billion) in Q3 2023.
The company reported strong sales of its mobile flagship devices, particularly the Galaxy S23 series and its foldable models, contributing to a consolidated revenue of KRW 30 trillion ($22.17 billion) in its mobile and network business.
The firm anticipates a rise in demand for its DRAM chips in 2024, due to the proliferation of on-device AI applications. As a response, Samsung plans to more than double its production capacity of advanced high-bandwidth memory chips in 2024.
Samsung also attributes improved performance to the recovering global smartphone market and strong sales of mobile displays. In fact, Samsung Display recorded 1.94 trillion won in operating profit for Q3 2023, its second-highest in the past three years.
The company plans to spend a record 53.7 trillion won on capital expenditure in 2023, including 47.5 trillion won on chips to respond to the anticipated increase in mid-to-long term demand.