Samsung reports record quarter on AI chip demand

Samsung Electronics reported Thursday that its operating profit for the July through September period reached 107.4 trillion won, or $80.5 billion. That figure sets a company record and marks the fourth consecutive quarter of peak performance for the firm. Total revenue climbed to 195.3 trillion won, equivalent to $146 billion, which is also an all time high.

The financial surge stems from high demand for computer memory chips used in artificial intelligence hardware. Samsung stated that clients are rushing to expand AI infrastructure, causing demand to outpace supply. The company expects this trend to continue through 2027. It plans to concentrate production on high bandwidth memory chips, server DRAMs, and solid state drives designed for AI servers.

This report followed a similar announcement by domestic rival SK Hynix, which also posted record third quarter profits. Together, these two South Korean firms control approximately two thirds of the global memory market. Both companies are benefiting from the worldwide expansion of AI technology.

South Korean tech firms are investing heavily in new semiconductor manufacturing sites 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 southwest of the country. The project aims to capitalize on sustained AI driven demand.

Analysts and financial institutions are watching the spending closely. The Bank of Korea warned that the country's trade dependent economy is becoming overly reliant on chip exports. The central bank noted that such concentration could deepen economic damage if the AI sector faces a downturn.