SEOUL – South Korean technology giant Samsung Electronics achieved a net profit of 42.19 billion won in 2017 ($39.30 billion), 85.6 percent more than in 2016 thanks to the boom in the memory chip industry, the company announced Wednesday.
The Suwon-based company, just south of Seoul, also earned a gross operating profit of 56.2 trillion won, 83 percent higher than the previous year, the company indicated in a statement.
Its operating profit was 53.65 trillion won, a 83.4 percent increase, supported by a turnover of 239.58 trillion won, which is 18.6 percent higher than in 2016.
With respect to the fourth quarter of the year, the world’s largest memory manufacturer saw its net profit increase 72.9 percent year-on-year to 12.26 trillion won.
Its operating profit was 15.15 billion won, a 64.3 percent increase compared to the last quarter of 2016, and its sales totaled 65.98 billion won, a 23.7 percent rise.
The company attributed the good performance in the fourth quarter to its component business unit, which manufactures the DRAM and NAND memory chips that have strengthened the company’s financial results throughout 2017.
Samsung said in the statement that “orders for high-performance memory products for servers and mobile storage were strong” during the October to December quarter.
The tech giant’s dominance in the memory sector, coupled with the high demand because of the rise of big data and the Internet of Things (IoT), has boosted the prices of this type of products and greatly benefited the company.
Samsung expects this strong demand to remain stable throughout 2018 as a result of the need to supply of new data centers as well as high-end mobile manufacturers, and plans to continue to strengthen its production to meet the expected demand.