Seoul: Samsung Electronics Co. reported a significant surge in net profit for the third quarter, though its semiconductor sector continues to struggle due to sluggish performance in artificial intelligence chips. The tech giant registered a net profit of 10.1 trillion won (US$7.3 billion) for the July-September period, marking a 72.8 percent increase from the same period last year, as disclosed in a regulatory filing. According to Yonhap News Agency, Samsung's operating profit skyrocketed by 277.4 percent to 9.18 trillion won, up from 2.43 trillion won the previous year. Additionally, revenue climbed 17.3 percent to reach 79.09 trillion won, setting a new quarterly record and surpassing the previous high of 77.8 trillion won from the first quarter of 2022. However, the operating profit fell short of the average estimate by 10.8 percent, based on a survey conducted by Yonhap Infomax, while the net profit estimate was unavailable. Samsung Electronics noted that the strong won negatively impacted the company's profit, reducing operating profit by 500 billion won compared to the previous quarter. The chip division experienced an operating profit of 3.86 trillion won for the third quarter, a recovery from a 2.18 trillion won deficit a year earlier, yet this represents a significant drop from a 6.45 trillion won profit in the preceding quarter. Market analysts had anticipated a higher performance from this division, with projections around 4.2 trillion won for the period. The world's leading memory chip manufacturer attributed the decline in semiconductor profit to unique factors. "Performance decreased due to a reduced reversal of inventory valuation loss compared to the previous quarter, one-off expenses such as the provision of incentives, and currency effects due to a weak dollar," the company stated. In the high-performance, high-value high bandwidth (HBM) market, Samsung Electronics finds itself trailing behind SK hynix Inc., which began mass-producing industry-leading 12-layer HBM3E chips last month. Meanwhile , Samsung's HBM3E products are still undergoing qualification testing by Nvidia Corp., a significant AI market player. Despite these challenges, Samsung's memory division benefited from increasing demand for AI applications and data center investments. Sales of HBM and other server-focused chips, including DDR5 and SSDs, lifted the division's third-quarter profit to 7 trillion won, compensating for losses in the foundry and system LSI segments. Samsung's device division, encompassing mobile, TV, and home appliances, reported 45 trillion won in sales and 3.4 trillion won in operating profit. The mobile segment remained strong, driven by the release of new foldable smartphones, tablets, and wearable products, while high-end TVs like Neo QLED and OLED models also bolstered profitability. The company invested 12.4 trillion won in facilities during the third quarter, with 10.7 trillion won dedicated to semiconductor production. Samsung's full-year facility investment is anticipated to reach 56.7 trillion won, a 3.6 trillion won increase from 2023. In terms of research and development, the tech giant spent 8.9 trillion won in the July-September period. Looking ahead to the fourth quarter, Samsung Electronics aims to bolster its leadership in premium products and AI capabilities, particularly in HBM products, by enhancing competitiveness in advanced technologies amid growing macroeconomic uncertainties. "The DS Division, or chip business, will address demand for differentiated products based on advanced technologies and high value-added products such as HBM and server SSDs," the company said.