Samsung reaps chip comeback, but behind in AI competition

SEOUL -- Samsung Electronics' profits are soaring on semiconductor business improvements but struggles to secure profit in generative AI chips are pushing the company to bolster development, including by hiring more engineers.

Operating profit for the April-June period was 10.4 trillion won ($7.5 billion), up sixteenfold year-on-year, the company said Friday. Excess chip inventory has been eliminated and the market has improved. Earnings have clearly recovered from the year ended December 2023, when the chip division recorded its largest-ever loss.