Amazon joins Samsung’s top 5 customers amid AI boom
Amazon became one of Samsung Electronics’ top five customers for the first time in Q1 2024, reflecting surging demand for memory chips driven by AI and cloud infrastructure spending. Samsung’s first-quarter report showed its largest customers—Alphabet, Amazon, Deutsche Telekom, Techtronic Industries, and Verizon—accounted for 23% of total revenue, with the Americas leading regional sales at $39.9 billion.
Samsung Electronics reported Amazon as one of its five largest customers for the first time in its first-quarter 2024 earnings, disclosed Friday. The list replaced Apple and Supreme Electronics, highlighting a shift toward cloud and AI-driven companies. Samsung attributed the change to stronger semiconductor sales to major cloud and AI infrastructure providers, alongside a recovery in memory chip prices. The top five customers—Alphabet, Amazon, Deutsche Telekom, Hong Kong-based Techtronic Industries, and Verizon—collectively contributed about 23% of Samsung’s total revenue in January-March. Regional sales data showed the Americas as the largest market at 59.75 trillion won ($39.9 billion), followed by China (28.16 trillion won) and Asia/Africa (16.76 trillion won). Sales in the Americas nearly doubled year-over-year, while China saw an even steeper rise, more than tripling from 9 trillion won. The growth aligns with global tech companies increasing investments in AI servers and data centers, driving demand for memory chips. Samsung’s exposure to cloud-related customers has strengthened as a result. The first-quarter report also noted a significant uptick in net sales across key regions, underscoring the tech giant’s expanding influence in the AI-driven semiconductor market.
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