SEOUL, South Korea, 29 October, (Brussels Morning Newspaper) – Samsung Electronics has reported record quarterly earnings as soaring demand for artificial intelligence chips strengthens its semiconductor business. Samsung profits reached 107.4 trillion won (approximately $80 billion) in the third quarter, an increase of 783.1% compared with the same period last year.
The South Korean technology company recorded revenue of 195.3 trillion won for the three months ending 30 September, representing a year-on-year increase of 126.9%.
The results, announced on Thursday, mark a historic milestone for Samsung as AI infrastructure investment drives demand for advanced memory chips and data centre technology.
Samsung Semiconductor Earnings Reach Historic Levels
Samsung’s Device Solutions division, responsible for semiconductor operations, generated 147.1 trillion won in revenue and 106.5 trillion won in operating profit.
The division contributed approximately 99% of Samsung’s total operating earnings, demonstrating the increasing importance of advanced semiconductor manufacturing.
Strong demand for high-bandwidth memory, particularly Samsung’s HBM4 products, supported the exceptional performance.
These specialised chips are essential for AI processors, enabling data centres to process large quantities of information efficiently.
Samsung also reported growing demand for server DRAM and solid-state drives, alongside higher semiconductor prices resulting from supply constraints.
However, the company’s Device eXperience division, which includes consumer electronics operations, recorded an operating loss of 0.8 trillion won.
Samsung Confirms Strong AI Chip Demand
In its official earnings announcement, Samsung attributed the semiconductor division’s performance to sustained demand for AI applications, stronger server sales and improvements in its product portfolio.
The company stated that the memory business had achieved another record quarter, supported by demand from AI infrastructure and server customers.
Samsung expects investment in artificial intelligence infrastructure to remain substantial throughout 2027.
The company also intends to expand sales of high-bandwidth memory, server DRAM and advanced storage products to strengthen its competitive position.
Its semiconductor manufacturing strategy includes further development of advanced production processes and expansion of global manufacturing capacity.
Global AI Boom Reshapes Semiconductor Competition
Samsung’s record earnings highlight the transformation taking place across the global semiconductor industry.
Technology companies are investing heavily in data centres, advanced processors and computing infrastructure to support increasingly sophisticated AI applications.
Samsung faces competition from SK Hynix, another South Korean semiconductor manufacturer benefiting from rising demand for advanced memory products.
Both companies play significant roles in supplying components used by international technology businesses.
Despite the strong financial performance, investors remain concerned about the long-term sustainability of AI infrastructure spending.
Samsung shares declined following the earnings announcement as markets assessed future semiconductor demand and shareholder returns.
What Samsung’s Record Earnings Mean for Europe
The semiconductor boom has implications for European businesses, particularly technology manufacturers, cloud service providers and companies developing artificial intelligence systems.
Rising memory prices could increase infrastructure costs for European organisations investing in AI computing capabilities.
Meanwhile, growing demand for advanced chips reinforces the importance of semiconductor supply chains to Europe’s digital economy.
The European Union has identified semiconductor manufacturing and technological resilience as strategic priorities, making developments among major Asian chip suppliers particularly relevant.
Samsung Targets Further Growth in 2027
Samsung expects AI-related memory demand to remain strong as technology companies continue expanding computing infrastructure.
The company plans to increase production of advanced semiconductor products and strengthen long-term relationships with major customers.
It also expects its new manufacturing facility in Taylor, Texas, to begin operations in 2027.
Although the latest results demonstrate exceptional growth, future earnings will depend on semiconductor pricing, manufacturing capacity and sustained investment in artificial intelligence technology.
