Samsung profits surge as buyers stockpile chips ahead of Trump tariffs

Samsung Electronics has posted stronger-than-expected quarterly profits as customers rushed to secure chips and smartphones ahead of impending US tariffs and export restrictions, according to a report on Tuesday.

By Connect Gujarat Desk 08 Apr 2025 in Business News

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Samsung profits surge as buyers stockpile chips ahead of Trump tariffs

The South Korean tech giant projected an operating profit of 6.6 trillion South Korean won or KRW ($4.5 billion) for the first quarter of 2025, surpassing analysts’ expectations of 5.2 trillion KRW, the report said.

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Sales are estimated to have increased by 10 per cent year-on-year. The company’s stock rose 2.1 per cent in early trading, though it lagged behind local competitor SK Hynix, which saw its shares climb nearly 4 per cent.

Concerns over new US trade policies under President Donald Trump have spurred demand for semiconductors, particularly memory chips and AI-related components.

While most semiconductors were initially exempt from tariffs announced last week, Trump later indicated that duties on chip imports and pharmaceuticals—previously excluded from reciprocal tariffs—would be imposed “very soon”.

This uncertainty has led customers to stockpile both cutting-edge and legacy chips, benefiting Samsung’s semiconductor business.

US export controls on Chinese chipmakers have also contributed to rising demand. China’s technology companies, particularly AI firms, have accelerated purchases of Samsung’s high-bandwidth memory (HBM) chips, which are used in AI processors such as Nvidia’s H20—a model specifically configured to comply with US trade restrictions.

Samsung’s contract chip manufacturing division has also seen increased orders from Chinese clients, including search engine giant Baidu.

#Samsung #India #Business #Business news

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