Samsung Electronics saw an improvement in its semiconductor business in the third quarter as memory chip prices rebounded, leading to a narrower operating loss of more than 600 billion won ($445 million).
This followed production cuts by chip manufacturers. While the semiconductor unit reported an operating loss for the quarter, it was an improvement from the previous quarter. Samsung’s mobile and network unit, buoyed by robust sales of foldable handsets, contributed significantly to offsetting the loss in the semiconductor division. The company’s display business also performed well, driven by demand for its organic light-emitting diode screens for premium smartphones. Overall, Samsung reported a 2.4 billion won operating profit, down 77.6% from the previous year, with revenue falling 12.2%. However, compared to the previous quarter, the operating profit surged 264%, with revenue rising 12.3%.
Analysts are optimistic about Samsung’s performance in the fourth quarter, anticipating a decline in memory chip inventory and continuous price rebound due to further production cuts. They also expect Samsung’s recovery to accelerate, attributed to the company’s higher share of advanced high-bandwidth memory chips and the impact of production cuts.
