Samsung Profit: Record $80.5 Billion Quarter
Memory chip sales for AI systems drove the company to its fourth consecutive quarter of record earnings.
By Elena Menon ·
Samsung Electronics posted a third-quarter operating profit of 107.4 trillion won, or $80.5 billion. The figure represents a company record and marks the fourth straight quarter of peak performance.
Revenue for the July to September period climbed to 195.3 trillion won, which equals $146 billion. This total also sets a new all-time high for the South Korean tech giant.
The surge in earnings stems from heavy demand for computer memory chips used in artificial intelligence systems. Samsung filed these results with regulators on Thursday. This move followed a day after rival SK Hynix announced its own record third-quarter profit.
Together, Samsung and SK Hynix control approximately two-thirds of the global memory chip market. The two firms currently face high demand from clients expanding AI infrastructure.
In a statement, Samsung projected that demand for its AI-related chips will outpace supply through 2027. The company plans to prioritize production of advanced memory and storage products for AI servers. These items include high-bandwidth memory chips, server DRAMs, and solid-state drives.
South Korean tech firms are pouring capital into new manufacturing facilities and data centers. In June, Samsung and SK Hynix announced a joint plan to invest 800 trillion won, or $599 billion, in a new chipmaking hub in the country's southwest.
Analysts question whether this massive spending will yield sufficient returns. The Bank of Korea has also warned that the national economy is becoming overly dependent on chips. The central bank noted that such reliance could deepen damage if an AI-related downturn occurs.
Source: KSAT-TV
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