Samsung's Semiconductor Business Faces Record Loss Despite Chip Recovery

Samsung Electronics Co. reported a fourth consecutive quarter of profit decline, with net income falling 74% in the holiday quarter due to a larger-than-expected loss in its chip operations. Despite a tax credit boosting its bottom line, the company's profit was impacted by uneven chip demand recovery. Samsung is working to catch up to rival SK Hynix Inc. in high-bandwidth memory chips and aims to solidify its competitiveness as a leading HBM supplier. The company expects its memory chip operations to return to profitability in the first quarter, aided by continued recovery in DRAM, and plans to offer AI software customized for its foldable devices to drive growth in the premium smartphone segment.