Samsung Hits Historic High: Record $80.19 Billion Profit Fueled by AI Chip Boom
Samsung Electronics hits a historic milestone with record quarterly profits driven by surging HBM4 AI chip demand and long-term supply deals.
Samsung Electronics has sent a powerful signal to the global tech industry, reporting a staggering third-quarter operating profit of 107.44 trillion won (approximately USD 80.19 billion). This milestone makes Samsung the first technology company in the world to surpass the 100 trillion won mark in quarterly operating profit, marking a massive comeback in the high-stakes artificial intelligence chip race.
The financial surge is nothing short of explosive. Operating earnings skyrocketed by 783.1 per cent compared to the previous year, while total revenue jumped 126.9 per cent to 195.25 trillion won (~USD 145.73 billion). This represents the company's fourth consecutive quarter of record-breaking growth, with net profit climbing 514.6 per cent to 75.14 trillion won (~USD 56.09 billion).
The AI Engine: HBM4 Chips Lead the Charge
The primary driver behind this windfall is Samsung's semiconductor division. The company has seen an unprecedented demand for its sixth-generation high-bandwidth memory chips, known as HBM4. Revenue from these specific AI-centric chips more than tripled during the quarter, contributing roughly 60 per cent of the total HBM revenue.
The market appetite for these components is so intense that Samsung has already sold out its HBM supply for 2027. According to reports, prices for these deals reflect the high competitiveness of Samsung's products, and major buyers are still requesting additional volumes. Furthermore, the company has already received positive feedback from customers regarding samples of the next-generation HBM4E chips shipped in May.
Securing the Future: 2030 and Beyond
Samsung isn't just winning the current quarter; it is locking in the next decade. The company has secured long-term memory supply agreements with 10 major clients and is in active discussions with another 10. The goal is to commit 60 to 70 per cent of its manufacturing capacity through 2030.
The Device Solutions unit, which focuses on semiconductors, was the undisputed star of the report, bringing in 147.1 trillion won (~USD 109.79 billion) in revenue and 106.5 trillion won (~USD 79.77 billion) in operating profit.
Mixed Results Across Other Divisions
While the chip business is soaring, other segments of the company told a different story:
- Device eXperience: The arm responsible for smartphones, televisions, and home appliances struggled, reporting 52.1 trillion won (~USD 39.02 billion) in revenue but suffering an operating loss of 800 billion won (~USD 599.2 million).
- Samsung Display: This division remained profitable, generating 8 trillion won (~USD 5.99 billion) in revenue and 1.1 trillion won (~USD 823.9 million) in profit.
- Harman: The subsidiary contributed 4.3 trillion won (~USD 3.22 billion) in revenue and 600 billion won (~USD 449.4 million) in operating earnings.
Aggressive Expansion to Meet Demand
Samsung has admitted that its current capacity for advanced nodes is not keeping pace with the global hunger for AI hardware. To solve this, the company is evaluating new fabrication facilities in both the United States and South Korea. In Taylor, Texas, equipment setup and cleanroom operations have already commenced, alongside expansions for advanced chip packaging.
The company is specifically looking at extra manufacturing lines for 2-nanometer chips, which are essential for high-performance computing and AI setups. Samsung expects this semiconductor upswing to last until at least 2027, with potential memory undersupply persisting into 2028.
Investment and Shareholder Returns
To sustain this growth, Samsung has planned a massive capital expenditure of 84.4 trillion won (~USD 63.2 billion) for 2026. The lion's share of this—76.8 trillion won (~USD 57.52 billion)—is earmarked for semiconductors.
Shareholders are also seeing the benefits of this success. The board has approved a third-quarter dividend of 4,601 won (~USD 3.45) per share, totaling roughly 30 trillion won (~USD 22.47 billion) to be distributed on November 27. Additionally, Samsung has confirmed that remaining unallocated funds from its shareholder target will be used for cash dividends and a substantial share repurchase and cancellation program.