Samsung posts record $80.5 billion profit on AI chip demand

Samsung Electronics reported Thursday that its operating profit for the July-September period hit an all-time high of 107.4 trillion won, or $80.5 billion. The company attributed the financial surge to strong demand for computer memory chips used in artificial intelligence systems. Total revenue for the quarter climbed to 195.3 trillion won, which equals $146 billion. This marks the fourth consecutive quarter in which Samsung has set new records for both profit and sales.

The filing arrived one day after rival SK Hynix announced its own record third-quarter earnings. Together, the two South Korean semiconductor manufacturers control approximately two-thirds of the global memory market. Both firms are currently facing high demand for their products as the global AI sector expands.

Samsung stated that it expects demand for AI-related chips to grow faster than supply through 2027. Clients are rushing to build out AI infrastructure, and the company plans to focus its output on advanced memory chips and storage products. These include high-bandwidth memory chips, server DRAMs, and solid-state drives designed for AI servers.

South Korean tech firms are investing heavily in new semiconductor manufacturing plants and data centers. In June, Samsung and SK Hynix announced a joint plan to invest 800 trillion won, roughly $599 billion, in a new chipmaking hub in the country's southwest. The project aims to capitalize on the current AI-driven market conditions.

Some analysts remain skeptical about whether these large capital expenditures will yield long-term returns. South Korea's central bank has also issued warnings that the country's trade-dependent economy is becoming overly reliant on the chip sector. The bank cautioned that such concentration could worsen the economic impact if an AI-related downturn occurs.