9 hours Ago By Anusuya Lahiri
Samsung Electronics Co SSNLF reported first-quarter revenue growth of 10% year-on-year to 79.1 trillion Korean won ($55.5 billion) Wednesday.
Revenue growth marked an all-time quarterly high, driven by strong sales of flagship Galaxy S25 smartphones and high-value-added products . Operating profit was 6.7 trillion Korean won ($17.
62 billion), up from 6.6 Korean won a year ago, despite headwinds for the DS Division. Also Read: Samsung’s China Chip Pivot Gains Steam With 54% Export Surge Amid US Market Struggles The DS Division (encompassing Memory and S.
LSI / Foundry) posted revenue of 25.1 trillion Korean won (versus 23.1 trillion Korean won Y/Y) .
The division reported 1.1 trillion Korean won in operating profit (versus 1.9 trillion Korean won Y/Y) due to the erosion of average selling price (ASP) and a decrease in HBM sales due to export controls on AI chips and deferred demand in anticipation of upcoming enhanced HBM3E products.
Samsung Display Corp Division (SDC) posted 5.9 trillion Korean won in revenue (versus 5.4 trillion Korean won Y/Y) and 0.
5 trillion Korean won in operating profit (versus 0.3 trillion Korean won Y/Y). The Mobile eXperience (MX) and Networks businesses posted 37.
0 trillion Korean won in revenue (versus 33.5 Korean won Y/Y). The division reported 4.
3 trillion Korean won in operating profit (versus 3.5 trillion Korean won Y/Y). The quarterly capex was 12.
13 trillion Korean won, down from 13.42 trillion Korean won a year ago. Samsung’s flagship products, including semiconductors, smartphones, and tablets, are now exempt from reciprocal tariffs.
Still, President Donald Trump has indicated that a tariff on the electronics supply chain, including chips, is in the works, Bloomberg reported Wednesday. Seoul and Washington agreed to pursue a comprehensive package agreement by July 8, when the 90-day tariff pause will end. Samsung has struggled for months to secure Nvidia Corp’s NVDA final nod for its most advanced HBM products, making it challenging to compete with Taiwan Semiconductor Manufacturing Co TSM .
Samsung is in talks to supply customized sixth-generation high-bandwidth memory, or HBM4, chips to major AI chipmakers, including Nvidia, Broadcom Inc AVGO and Alphabet Inc GOOG GOOGL Google , the Korea Economic Daily reported Wednesday. Outlook: In the second quarter, the Memory Business anticipates robust demand for AI servers and a ramp-up of the enhanced HBM3E 12H. AI-related demand is expected to remain high in the second half, in conjunction with the launch of new GPUs.
In the second quarter, the System LSI Business will maintain steady revenue by gaining SoC adoption by a major customer for new flagship models and capitalizing on the growing adoption of 200-megapixel sensors. In the second half, the System LSI Business will expand its flagship SoC supply and develop its automotive sensor portfolio. In the second quarter, the Foundry Business will stabilize its 2nm process production and drive earnings improvement by actively addressing strong mobile and automotive demand in the United States.
Looking ahead to the second half, the Foundry Business aims to start 2nm mass production, secure major 2nm orders, and strengthen its specialty process portfolio on mature nodes. In the second quarter, the mobile display business maintained a conservative outlook on earnings while pursuing a stable supply of new products such as foldables. In the second half, SDC aims to grow mobile display business sales through differentiated technologies and products.
In the second quarter, MX Business plans to sustain flagship-centric sales amid weak seasonality by successfully launching the Galaxy S25 Edge. It will also expand its AI smartphone lineup by introducing “Awesome Intelligence” to the Galaxy A series. In the second half, the MX Business will strengthen its foldable lineup by offering a differentiated AI user experience.
In addition, the Business will launch new ecosystem products with enhanced AI and health capabilities and explore new product segments such as XR. In the second quarter, Visual Display and Digital Appliances intends to expand TV sales with its 2025 AI TV lineup and the integration of advanced AI functions. In the second half, the Business will focus on capturing peak season demand through strategic collaboration with distributors based on an enhanced AI TV lineup.
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