Samsung posts record $80.5 billion profit on AI chip sales

Samsung Electronics reported a record operating profit of 107.4 trillion won, or 80.5 billion dollars, for the third quarter. The company attributed the financial surge to high demand for computer memory chips designed for artificial intelligence systems. This result marks the fourth straight quarter in which the firm achieved its highest earnings and revenue totals.

Revenue for the July through September period climbed to an all-time high of 195.3 trillion won, equivalent to 146 billion dollars. The filing arrived one day after domestic competitor SK Hynix also announced record third-quarter profits. Together, the two South Korean semiconductor firms control approximately two-thirds of the global memory market. They are currently facing strong demand from clients expanding their AI infrastructure.

In a statement, Samsung projected that demand for its AI-related chips will accelerate through 2027. The company noted that supply will likely lag behind as customers race to build out new systems. Samsung plans to focus its production on advanced memory chips and storage products for AI servers. These include high-bandwidth memory chips, server DRAMs, and solid-state drives.

South Korean tech firms are investing heavily in new manufacturing facilities and data centers to support the country's growing AI sector. In June, Samsung and SK Hynix announced a joint plan to invest 800 trillion won, or 599 billion dollars, in a new chipmaking hub in the southwest region of the country. This investment aims to capitalize on the current surge in AI-driven demand.

Analysts have raised questions about whether these massive expenditures will yield a return. The Bank of Korea warned that the nation's trade-dependent economy is becoming overly reliant on chip exports. The central bank stated that such dependence could deepen economic damage if an AI-related downturn occurs.