Key facts
- Samsung Electronics reported a record operating profit of 89.5 trillion won ($62 billion) for the April-June period.
- The semiconductor business was the primary driver of Samsung's profit, fueled by demand for AI chips.
- Samsung expects global chip shortages to continue until 2028.
- The company has entered into multi-year supply agreements with major data center operators.
- Samsung's mobile division incurred an operating loss, attributed in part to increased component costs.
Samsung Electronics announced record operating profit for the April-June period, driven primarily by its semiconductor business which is benefiting from the global artificial intelligence boom. The company reported 89.5 trillion won ($62 billion) in operating profit and 171.5 trillion won ($119 billion) in revenue, marking all-time highs.
The surge in profit is attributed to rising prices for memory chips used in AI servers and increased shipments of high-bandwidth memory chips. This demand is expected to continue in the second half of the year, with Samsung anticipating that the market will remain undersupplied.
Despite these strong results, Samsung expects global chip shortages to persist until 2028. To address this, the company has entered into multi-year supply deals with major data center operators. However, Samsung's mobile, TV, and home appliances division reported an operating loss, partly due to higher component costs.
Samsung's performance follows similar record earnings from rival SK Hynix, which reported 60.5 trillion won ($42 billion) in revenue for its second quarter. Both companies' shares have seen declines this week amid concerns about massive spending on manufacturing capacity and potential intensified competition from China.