Samsung’s profitability dropped substantially during the third quarter from the downturn in the memory market.
However, its foundry business, or contract chip production, posted its highest quarterly revenue ever from the improved yield rate of advanced nodes.
The tech giant said it reported 76.78 trillion won in revenue and 19.85 trillion won in operating income.
The revenue figure is its highest third quarter revenue ever and Samsung said its annual revenue this year will also be its best so far.
Sales from its mobile, foundry and small display panel businesses contributed to the record revenue, the company said.
However, the operating margin rate stood at 14.1% during the quarter, down by 4.1 points from the second quarter.
Its Device Solutions division recorded 5.12 trillion won in operating income. Samsung said customer adjusted their inventory more than expected and demand for memory chips from the consumer sector was also low.
Samsung Display recorded 1.98 trillion won in operating income thanks to the high demand for flagship smartphones.
The Device Experience division contributed 3.53 trillion won to the total operating income figure.
Samsung said the division saw strong sales of its flagship smartphones __ especially foldables __ and new wearable devices.
The tech giant said it expected low demand for IT products and memory chips to continue through the fourth quarter.
Samsung also announced on Thursday that it will procure Xenon gas used in semiconductor production from Psoco starting in 2024.
The pair will co-develop the rare gas which is used in the production of V-NAND chips.