Samsung announces that operating profit grew 19 times in the 2nd quarter

Dand according to preliminary results, the 19-fold increase in operating profit for the period from april to june is expected to reach 89.4 billion won (51 billion euros).

The strong global demand for advanced semiconductors used in artificial intelligence data centers (IA) has led the leading South Korean manufacturers to record record profits and boosted the country's economic growth.

The estimate, released by Samsung in a statement sent to Seoul's stock exchange, surpasses market forecasts by 6.2% and marks a new quarterly record, according to the South Korean public news agency Yonhap.

The quarterly revenue for technology is expected to grow by 129% compared to the previous year, reaching 171 billion won (EUR 98 billion).

The final figures should be released at the end of July.

On June 29, the South Korean Government presented an ambitious ten-year plan for the construction of advanced semiconductor plants and AI data centers.

Under this plan, 800 billion won (EUR 455 billion) were allocated to the construction of four new plants by Samsung Electronics and the rival SK Hynix in South Korea.

The success of the AI semiconductor sector in South Korea also led to a corresponding increase in the state’s tax revenue and fuelled the debate on how these exceptional revenues should be used.

In late May, Samsung Electronics workers' unions approved a wage agreement that avoided an unprecedented strike in South Korea.

The agreement, approved by 73.7% of the votes, provides for substantial annual bonuses linked to profits generated by artificial intelligence (IA).

Samsung and the trade union confederation reached an agreement to avoid a general strike, with a commitment that includes individual bonuses of up to 343,000 euros this year for 78 thousand semiconductor division employees.

Workers demanded the current elimination of the ceiling for the performance bonus, set at up to 50% of the annual salary, and ask for replacement by a system that reserves 15% of the operating profit for incentives.

The preliminary agreement includes a special bonus for the Device Solutions division, responsible for the semiconductor business, equivalent to 10.5% of the company's performance and without maximum payment limit.

Division officials can receive between 210 million and 600 million won (between 120 thousand and 343,000 euros) in bonuses, according to the South Korean public news agency Yonhap.

On May 14, the Government of South Korea had requested an urgent resolution of the labor conflict at Samsung Electronics and warned that a strike could compromise the country's economy.