Samsung posts record $80.5 billion profit on AI chip demand

Samsung Electronics reported a record operating profit of 107.4 trillion won, equivalent to $80.5 billion, for the July-September period. The company attributed the financial surge to rising demand for computer memory chips utilized in artificial intelligence systems.

Total revenue climbed to an all-time high of 195.3 trillion won, or $146 billion. This result marks the fourth consecutive quarter in which the company achieved record figures for both profit and revenue.

The announcement followed a similar report from domestic competitor SK Hynix, which also posted record third-quarter profits. Together, the two South Korean firms control approximately two-thirds of the global memory market. Both companies face intense demand for their products as the global push for artificial intelligence infrastructure expands.

In a filing, Samsung stated that demand for its AI-related chips is expected to accelerate through 2027. The company noted that client demand will outpace supply as firms race to build out AI capabilities. Samsung plans to prioritize the production of advanced memory chips and storage products for AI servers, specifically high-bandwidth memory chips, server DRAMs, and solid-state drives.

South Korean technology firms are channeling substantial capital into new semiconductor manufacturing plants and data centers. In June, Samsung and SK Hynix announced a joint investment of 800 trillion won, valued at $599 billion, for a new chipmaking hub in the country's southwest region.

Economists and analysts remain divided on the sustainability of this spending. South Korea's central bank has warned that the nation's trade-dependent economy is becoming overly reliant on the chip sector. The bank suggested that such concentration could amplify economic damage if an AI-related downturn occurs.