South Korean chipmakers, led by Samsung, enjoyed record profits in recent years as prices for their products soared, but a global economic slowdown dealt a blow to memory chip sales.
However, the semiconductor market had been predicted to recover this year and grow 11.8 percent, according to industry monitor World Semiconductor Trade Statistics.
The news from Samsung comes after South Korea's SK Hynix -- the world's second-largest memory chip maker -- announced in January that it had returned to profit after four consecutive quarters of losses.
Samsung's "overall outlook is secured by a resurgence in the smartphone market, escalating DRAM prices, and a modest decline in FED interest rates," Brady Wang, associate director of market research firm Counterpoint, told AFP.
"Samsung is strategically positioned to thrive amidst the evolving market conditions."
But to maintain its momentum, the tech giant needs to "focus on accelerating development in emerging areas like High Bandwidth Memory, crucial for AI and high-performance computing," he said.
Semiconductors are the lifeblood of the global economy, used in everything from kitchen appliances and mobile phones to cars and weapons.
And demand for the advanced chips that power AI systems has skyrocketed thanks to the success of ChatGPT and other generative AI products.
Semiconductors are South Korea's leading export and hit $11.7 billion in March, their highest level in almost two years, accounting for a fifth of South Korea's total exports, according to figures released by the trade ministry.
Source: AFP
