Samsung posts $10.4 billion chip profit in 2024 but trails SK hynix

A visitor uses a Samsung Electronics' flagship smartphone Galaxy S24 during its unveiling ceremony in Seoul, South Korea, January 15, 2024. [REUTERS/YONHAP]

Samsung Electronics posted 15.1 trillion won ($10.4 billion) in chip profit in 2024, marking the first year it fell behind its crosstown rival SK hynix, except for 2023 when both companies recorded significant losses due to a cyclic downturn.
 
The Korean electronics giant announced its 2024 annual and fourth-quarter earnings on Friday.
 
Operating profit for its chip division in 2024 was 15.1 trillion won, rebounding from a 14.9 trillion won loss the previous year amid a severe cyclic downturn. SK hynix posted a 23.5 trillion won profit last year.
 
For the fourth quarter, Samsung reported 2.9 trillion won of profit for its chip business, with 30.1 trillion won in quarterly revenue.
 
Samsung Electronics said its annual revenue reached 300.9 trillion won, a 16.2 percent on-year jump. The annual profit posted was 32.7 trillion won, a 398.3 percent increase from the previous year. Both figures fell short of market expectations of 303.1 trillion won and 34.8 trillion won, respectively, according to data compiled by FnGuide.
 
On the same day, Bloomberg reported that Samsung Electronics' eight-layered HBM3E chip has received the green light from Nvidia for use in processors destined for the Chinese market, though the Korean chipmaker declined to confirm the report.  
 

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]