"Samsung Electronics" company reported record earnings for the first quarter of this year. Profits from microchip sales increased 50-fold compared to the same period last year. Ixbt.com reports on this.
Company representatives expect demand and prices for memory chips to rise due to customer investments in artificial intelligence technologies.
The world's largest memory chip manufacturer announced that multi-year contracts have been signed with customers to guarantee supplies. In a statement to analysts, Kim Chjejun, head of "Samsung's" memory chip division, noted that current supply volumes are significantly lagging behind customer demand.
According to company forecasts, the gap between supply and demand will widen even further in 2027 compared to 2026. Due to the long time required to build new factories, supply will remain limited amid the development of artificial intelligence.
During the January-March period, the chip division's operating profit amounted to 53.7 trillion won ($36.15 billion).
Conflicts in the Middle East have not affected the production process, as the company has diversified its raw material sources and formed necessary reserves. However, rising oil prices may lead to increased transportation costs.
Following the announcement of the financial results, the value of "Samsung" shares has grown by a total of 88 percent this year.
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