Samsung says chip demand from AI services to aid recovery
Record 11.2 bln chip losses in 2023 from severe downturn
Targets doubledigit growth in flagship smartphone sales

SEOUL, Jan 31 Reuters Samsung Electronics flagged a continued recovery in memory chips and tech demand in 2024, after reporting a 34 drop in fourthquarter profit despite a memory price rebound as consumer demand remained weak in many businesses.

The world39;s biggest maker of memory chips said it expected mobile and PC makers to place more, better chips in devices as use of artificial intelligence expands, while the need to replace older servers would also aid a gradual demand recovery.

In 2024, the memory business expects the market to continue to recover despite various potential obstacles, including interest rate policies and geopolitical issues, Samsung said in a statement.

Samsung said operating profit fell to 2.8 trillion won 2.11 billion in OctoberDecember, versus 4.3 trillion won a year earlier.

For the full year, its chip business swung to a record loss of 14.9 trillion won in 2023 from a 23.8 trillion won profit a year earlier, hit by an unprecedented downturn caused by weak demand for gadgets that use chips.

However, fourthquarter losses shrank to 2.18 trillion won in the fourth quarter, lower than every other quarterly loss in 2023 in the business that has historically been Samsung39;s cash cow as Chinese PC and mobile makers began to restock chips and memory chip prices rebounded….