South Korea’s electronics giant Samsung Electronics (GB:SMSN) (OTC:SSNLF) (DE:SSU) expects a nearly tenfold increase in its first-quarter operating profits. The company also plans a significant boost to its chip investments in Texas.
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Samsung’s Impressive Growth
Samsung expects its Q1 operating profits to surge nearly tenfold to 6.6 trillion Korean Won amidst an AI-fueled semiconductor boom and improving prices. The company anticipates sales for the quarter to reach nearly 71 trillion Korean Won, signaling an almost 11% year-over-year increase. Samsung is set to disclose its first-quarter results on April 30.
Samsung’s Future Growth Strategy
Amid buoyant demand for semiconductors, Samsung plans to boost its chip investments in Texas to a substantial $44 billion. Samsung is already establishing a semiconductor hub in Taylor, Texas. Its new plans consist of a chip-making facility and a site for advanced packaging and R&D.
Billion Dollar Investments
According to the Wall Street Journal, Samsung is expected to receive subsidies totaling billions of dollars to fund the expansion. Other top chipmakers, like Taiwan Semiconductor (NYSE:TSM) and Intel (NASDAQ:INTC), are also investing billions in setting up production hubs in the U.S. Intel intends to invest over $100 billion in the U.S. over the next five years.
Samsung Stock Performance
Samsung’s London-listed shares have rallied by nearly 28% over the past six months. Following this rise, SMSN stock is currently trading at a price-to-earnings multiple of 36.5.
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