Samsung reports record profits and prepares new AI chips amid industry shortage

Samsung Electronics announced record quarterly operating profits, which more than tripled, driven by soaring demand for memory chips used in artificial intelligence systems. The company and its rival SK hynix are now preparing to compete in the next generation of these high-performance chips, called HBM4.

This intense focus on producing chips for AI is creating a shortage for other devices. Both Samsung and SK hynix have warned that supplies for memory chips used in personal computers and smartphones are being squeezed as manufacturers prioritize AI products. Apple has also noted that rising memory costs are starting to affect its business.