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Samsung Chip Profit Surges As AI Demand Strains Memory Supply

Samsung Electronics reported a sharp increase in quarterly profit, with operating profit in its chip division rising 49-fold year-on-year. The results reflect growing demand linked to artificial intelligence, which is also affecting supply conditions in the memory market.

Record Quarterly Gains

Operating profit in the chip division increased from 1.1 trillion won to 53.7 trillion won over the past year, accounting for 94% of the total quarterly profit of 57.2 trillion won. These results reflect the role of memory chips in supporting infrastructure related to AI and data processing.

Widening Supply-Demand Gap In Memory Chips

Kim Jaejune said current production capacity remains below demand levels. Forecasts extending to 2027 indicate that the gap between supply and demand may widen further as requirements for high-performance chips increase, particularly in AI data centres.

Securing Supply Amid AI Investment

In response, Samsung has entered into multi-year agreements with key customers to secure supply. At the same time, production capacity is being directed toward advanced chips used in AI systems, including those developed by Nvidia.

Production Risks And Strategic Adjustments

The company is also preparing for potential disruptions related to labour activity in South Korea, particularly within its semiconductor operations. Measures have been introduced to maintain production continuity, while capital expenditure is expected to increase to support demand from AI-related applications.

Impact On Broader Business Segments

Higher component costs have affected other business units. The mobile division recorded a 35% decline in profit, while operating profit in the display segment decreased by 20%, reflecting the impact of rising input costs.

Starbucks Wins ‘Best Workplace / Employer Of Choice At The 18th IN Business Awards

Starbucks was recently awarded the ‘Best Workplace / Employer of Choice’ award at the 18th IN Business Awards in Greece — a recognition that reflects the company’s philosophy and its ongoing investment in its people.

This distinction confirms Starbucks’ commitment to creating a work environment defined by respect, collaboration, inclusivity, and equal opportunities for all. Starbucks consistently fosters a culture that encourages growth, authenticity, and participation since people are always at the center.

“At Starbucks, our success is rooted in our people. This recognition is a testament to our team’s dedication to nurturing a space where everyone can express themselves, grow equally, and deliver exceptional experiences to our customers,” said Pambis Anastasis — District Manager of Starbucks, who received the award.

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Through modern development and employee support practices, Starbucks meaningfully invests in the continuous training and empowerment of its workforce, offering learning opportunities, mentorship, and career advancement at every stage of their journey.

The company also promotes an inclusive workplace where every employee feels a sense of belonging, can express themselves freely, and grow equally. This approach is a core element of Starbucks’ identity and is reflected both in the company’s internal culture, and in the experience it delivers to customers.

Winning at the prestigious IN Business Awards is a great honor for Starbucks and serves as a strong affirmation that its people are always at the heart of every step it takes.

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