The significant decline in chip revenue has significantly hurt Samsung’s profits, but the company now expects a return to former form due to increased demand for memory products for AI applications. The company now expects this year’s chip revenue to return to the 2022 level before the crisis, which will bring high profits to the company. A return to these levels is needed for Samsung to significantly increase its profits again.
Samsung wants to increase memory profits
This expectation was also shared by Samsung co-CEO Kyung Kye-hyun at the company’s annual shareholder meeting. Kye-hun heads the device solutions business, Samsung’s chip division. He also said that Samsung aims to become the world’s largest semiconductor company in the next two to three years.
The decline in memory chip demand and price declines have also significantly hurt Samsung, which remains the world’s largest memory chip maker, although total revenue for all its semiconductor products still lags behind Intel.