Key facts
- Samsung Electronics reported a record operating profit of ₩89.5 trillion for the April-to-June period.
- The semiconductor division's operating profit surged 223 times year-over-year to ₩89.2 trillion.
- Samsung's quarterly revenue hit an all-time high of ₩171.5 trillion.
- Samsung Electro-Mechanics' Q2 net profit rose 139.2% year-over-year to 328.3 billion won.
- South Korean exports are expected to show robust growth in July, fueled by AI chip demand.
Samsung Electronics reported a record operating profit of ₩89.5 trillion (€54 billion) for the April-to-June period, a 56% increase quarter-on-quarter and more than 19 times the level recorded a year earlier. The company's semiconductor division saw its operating profit surge to ₩89.2 trillion (€53.8 billion), 223 times its year-earlier level, driven by rising chip prices due to demand for AI servers and increased shipments of advanced high-bandwidth memory chips. This strong performance in semiconductors outweighed an operating loss in its mobile, TV, and home appliances division.
Samsung's quarterly revenue also reached an all-time high of ₩171.5 trillion (€103.5 billion), up 28% quarter-on-quarter and 130% year-on-year. The company anticipates continued strong demand for its memory products in the second half of the year, citing the ongoing expansion of AI infrastructure and broader adoption of agentic AI. Samsung expects demand for server chips to accelerate, potentially keeping the market undersupplied.
Samsung's results follow similar strong performance from rival SK Hynix, which also posted record quarterly revenue and operating profit. Both companies are major players in the global artificial intelligence boom. However, despite soaring profits, their shares have experienced sharp declines amid concerns about heavy spending on manufacturing capacity expansion and potential competition from China.
Samsung's semiconductor division expects the gap between chip supply and demand to widen further, potentially persisting into 2028. The company is proceeding with its first semiconductor fabrication plant in Taylor, Texas, expected to begin operations this year, and plans a second factory there for mass production by 2030. Samsung has secured long-term chip supply contracts with five major data center companies and is nearing agreements with five others, potentially including AWS, Google, Meta, Oracle, and Microsoft.
Samsung Electro-Mechanics, a subsidiary, also reported significant growth, with Q2 net profit rising 139.2% year-over-year to 328.3 billion won and operating profit reaching 440.4 billion won. Sales increased 24.2% to a quarterly record of 3.46 trillion won, driven by demand for AI infrastructure components like MLCCs and semiconductor substrates, as well as automotive components.
South Korean exports are projected to show continued robust growth in July, largely due to the demand for AI chips.