Samsung Profit Plummets Over 50% Year-Over-Year

Samsung Electronics, the powerhouse behind South Korea’s largest family conglomerate, is gearing up to boost its semiconductor manufacturing, known as foundry activity, in the latter half of the year.

Samsung is accelerating semiconductor production to meet robust AI demand.

• Samsung plans to accelerate mass production of semiconductors in the second half of the year.
• The company anticipates strong demand for DRAM and NAND flash memory, driven by AI investments from cloud providers.
• This outlook follows positive developments for Samsung, including the release of its president, Lee Jae-Yong, and a significant agreement with Tesla.

AI Fuels Demand for Samsung’s Memory Chips

The company expects artificial intelligence to remain a key driver for its products.

“AI demand should remain robust due to continuous investments on the part of major cloud service providers,” Samsung stated. This sentiment underpins their expectation for sustained strength in DRAM servers and NAND flash memory sectors.

What is foundry activity? It’s the business of manufacturing semiconductors for other companies, essentially acting as a factory for chip designs.

Recent Upswings for the Tech Giant

These projections come after a period of positive news for Samsung Electronics. The company saw the release of its president, Lee Jae-Yong, from a contentious merger case. Furthermore, a multi-billion dollar deal with the American company Tesla has bolstered its position.