Samsung Reports Record Profit On Chip Demand

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Samsung said preliminary figures put quarterly operating profit at €71.68 billion, a ninefold increase and a record for the company. Higher memory-chip prices, including demand for AI data-center components, drove the surge, while revenue missed market expectations and the company’s phone business faced pressure.

Samsung said preliminary figures show operating profit of €71.68 billion for the latest quarter, a ninefold rise that DER SPIEGEL described as the highest quarterly profit ever recorded by a technology company. The South Korean conglomerate attributed its surge to sharply higher memory-chip prices, while its revenue growth still fell short of market expectations.

The company’s preliminary estimate marks its fourth consecutive record quarterly operating profit. Revenue rose 127 percent to about €130 billion, according to the report, but came in slightly below analysts’ expectations. Samsung has said it will release its final results on October 29; the profit and revenue figures remain preliminary until then.

The semiconductor business is benefiting from constrained supply and increased demand from data-center construction. The shortage covers not only high-bandwidth memory (HBM) used in AI systems but also conventional DRAM and NAND chips found in computers and smartphones. Samsung expects tight supply conditions to persist until 2028 at the earliest, according to the report.

Samsung is seeking longer-term supply agreements with data-center operators as it invests in additional production capacity. Analyst Douglas Kim, founder of Douglas Research, estimated that sales of Samsung’s HBM products likely rose 50 percent in the third quarter from the previous quarter. That estimate could point to progress against SK Hynix, the leading producer of HBM, but it is not a final Samsung sales figure.

AI Chip Demand Reshapes Samsung’s Results

The figures show how demand associated with AI infrastructure is affecting a company with businesses ranging from semiconductors to phones and consumer electronics. Higher memory prices are providing a major lift to Samsung’s chip division, while the same boom is contributing to supply constraints that affect companies seeking components for data centers, PCs and smartphones.

The gains are not shared evenly across Samsung’s operations. The report says rising memory prices have weighed on margins in its smartphone and consumer-electronics businesses. Analyst estimates put the mobile division’s third-quarter loss at about €894 million, an unexpectedly large shortfall. That estimate is not a company-reported final result, and the detailed accounts could clarify how each business performed.

Samsung’s results also matter to the broader competition for AI-related memory supply. Strong HBM sales could help it narrow the distance to SK Hynix, while data-center operators’ demand for long-term supply contracts may shape how quickly production investments translate into available chips. The available report does not provide contract terms or confirm that any such agreements have been signed.

A Four-Quarter Run of Profit Records

Samsung is a major South Korean conglomerate whose businesses include memory chips, smartphones and consumer electronics. The company’s current results arrive amid a global expansion of data-center construction, which has increased demand for memory used to store and move data. HBM is especially relevant to AI systems because of its ability to deliver data quickly, while DRAM and NAND also serve wider computing and mobile-device markets.

The report places the quarterly figures against South Korea’s stated ambition to become a leading AI power alongside the United States and China. Samsung’s chip business is part of that industrial picture, but one company’s profit does not by itself establish the country’s overall standing in AI. The results instead show the commercial effect of current memory demand and tight supply on one of the country’s largest technology firms.

Samsung is also planning a record €73 billion in shareholder distributions this year, according to the report. Employees are benefiting through bonus payments: the report says 10.5 percent of company profits will be distributed, with an average payment of around €290,000 per employee. Individual payments vary, and the source says bonuses in the semiconductor division are often higher.

“The company said preliminary operating profit increased ninefold.”

— Samsung

Final Figures and Division Results Pending

Samsung has not yet published its detailed quarterly results. The reported €71.68 billion operating profit and €130 billion revenue are preliminary figures, so the final amounts and their breakdown by business remain pending. The report does not identify the exact market forecast against which revenue fell short.

Some details are estimates rather than company disclosures. The projected HBM sales increase comes from Douglas Kim, while the mobile division’s estimated €894 million loss is attributed to analyst estimates. It is not yet clear how Samsung’s final accounts will compare with either estimate, what share of the profit surge came from specific memory products, or how much additional production capacity the company will bring online and when.

The report also gives no terms for the long-term supply contracts Samsung is seeking, nor does it say which data-center operators might sign them. Its expectation that supply will remain tight until 2028 or later is the company’s outlook, not a guarantee that conditions will follow that timeline.

Samsung’s October Results Release

Samsung plans to release its final quarterly results on October 29. The detailed report should provide confirmed figures and more information about the contribution of the semiconductor, mobile and consumer-electronics businesses. Investors are also looking for further detail on the company’s outlook, according to the source report.

Attention will also be on Samsung’s efforts to expand chip production and secure longer-term supply arrangements with data-center operators. Until the company provides more detail, the timing and scale of those arrangements—and how they might affect future supply—remain open.

Key Questions

How much profit did Samsung report?

Samsung’s preliminary estimate put quarterly operating profit at €71.68 billion, nine times the level in the comparable period described in the report. The company plans to publish final figures on October 29.

What drove the increase in profit?

The report attributes the surge mainly to higher memory-chip prices amid strong demand and limited supply. Demand includes HBM used in AI data centers as well as conventional DRAM and NAND memory.

Did Samsung’s revenue meet expectations?

No. Revenue rose 127 percent to about €130 billion, but the report says it fell slightly short of market expectations. The exact forecast was not provided.

Is Samsung now ahead of SK Hynix in HBM?

The report identifies SK Hynix as the leading HBM producer. Analyst Douglas Kim estimated that Samsung’s HBM sales rose 50 percent quarter over quarter, which could help Samsung narrow the gap; it does not establish that Samsung has overtaken its rival.

When will Samsung confirm the results?

Samsung plans to publish its final quarterly results on October 29. Until then, the reported operating profit and revenue remain preliminary.

Source: rss