Samsung Reports 48-Fold Chip Profit Surge as AI Memory Supply Tightens

Samsung Electronics reported a sharp increase in semiconductor earnings as demand for AI data-center memory chips lifted results. The company said operating profit in its chip division rose to 53.7 trillion won from 1.1 trillion won a year earlier, while revenue climbed 50% to 133.9 trillion won.

Samsung said memory supply is already falling short and that the supply-demand gap is expected to worsen into 2027, with customers bringing orders forward and signing multi-year contracts. The company said it has begun mass production of HBM4 chips for Nvidia and expects HBM revenue to triple this year, helped by AI infrastructure spending from hyperscalers including Amazon, Microsoft and Alphabet.