Samsung Semiconductor Profit Surges 250x on AI Demand

According to Samsung Electronics, the company delivered strong second-quarter financial results, driven by robust demand for memory chips as global investment in artificial intelligence (AI) infrastructure continues to accelerate. The semiconductor business became the company’s primary growth engine, supported by rising demand for AI servers and advanced memory solutions.

Samsung reported that its second-quarter revenue reached KRW 171.5 trillion, while operating profit climbed to KRW 89.5 trillion, representing a significant year-over-year increase and exceeding market expectations. The company’s semiconductor division recorded an operating profit of KRW 89.2 trillion, marking a sharp improvement compared with the same period last year.

Samsung said the continued expansion of AI server deployments boosted its memory business, with both DRAM and NAND sales reaching record highs during the quarter. As investments in AI infrastructure accelerate and emerging applications such as agentic AI continue to expand, Samsung expects server-related memory demand to remain strong in the second half of the year. Demand for server DRAM, enterprise SSDs, and high-bandwidth memory (HBM) is expected to increase further.

In the AI memory market, Samsung highlighted progress in its HBM strategy. The company has expanded sales of HBM4 products and delivered what it described as the industry’s first HBM4E samples to key customers. HBM4 is Samsung’s sixth-generation high-bandwidth memory solution designed for advanced AI processors and next-generation AI computing platforms.

Samsung expects the memory market to remain tight despite slower demand in consumer electronics markets such as smartphones and PCs. The company believes continued capital investment in AI infrastructure will support long-term memory demand growth and maintain a supply-demand imbalance.

Meanwhile, growing AI demand is encouraging memory manufacturers to strengthen long-term partnerships with technology companies. Samsung previously announced an expanded collaboration with Broadcom across memory solutions and foundry technologies, including cooperation related to Samsung’s 2nm process technology and advanced semiconductor manufacturing capabilities.

However, rising memory prices have also created challenges for some of Samsung’s consumer businesses. The company’s mobile division reported an operating loss of approximately KRW 700 billion in the second quarter, marking its first quarterly loss for the business.

With AI server construction continuing worldwide, memory chips are becoming a critical component of AI infrastructure. Samsung expects future growth to be primarily driven by AI-related memory products, including server DRAM, HBM, and enterprise SSD solutions.