Samsung Foundry has witnessed a massive blow, as the division reports a whopping 40% QoQ decline in profitability, creating massive troubles for the Korean giant.
Samsung’s DS Division Reports Dwindling Economic Conditions, Yet Future Ambitions Indicate A “Comeback”
Samsung’s financial troubles aren’t finishing just yet, as after reporting a massive strike to its HBM business, the Korean giant is now facing dwindling economic conditions with its semiconductor division, as the firm’s Q3 2024 earnings report reveals that Samsung’s DS department has reported quarterly operating profits at KRW 3.86 trillion, coming in less than the expected KRW 4.2 trillion. The main culprit in low profitability rates is associated with the slack in the HBM business, following the announcement that Samsung has unable to secure NVIDIA and other AI tech giants as customers for their HBM portfolio.
Interestingly, Samsung’s overall YoY revenue growth is still at 17.35%, reaching up to KRW 79.1 trillion, but with the semiconductor business lagging, the earnings reports haven’t created much of a positive impact on the markets. For those unaware, Samsung’s HBM business hasn’t managed to held up against competitors, notably SK hynix, as despite going through a thorough “HBM sampling” process with NVIDIA, the Korean giant was unable to secure Team Green as a customer, after which, the business has been witnessing an overall downfall.
However, with Samsung’s HBM ambitions, the Korean giant has revealed profound achievements, that might prove to be a…
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