Samsung said quarterly profit hit a record as memory-chip demand stayed strong.
Why it matters: The results are another sign that AI data-center spending is still supporting semiconductor earnings. They also underscore how concentrated the memory-chip market remains among a few large suppliers.
- Samsung Electronics said second-quarter operating profit was 10.4 trillion won, according to its July 30 earnings release.
- Revenue reached a record 74.6 trillion won in the quarter.
- Samsung said its semiconductor division benefited from stronger chip prices, demand for AI servers and shipments of high-bandwidth memory chips.
- The company said it plans to start building a second semiconductor fab in Taylor, Texas, before the end of 2026, with production targeted for 2030.
Samsung's results point to continued demand for memory chips used in AI data centers. The company said its semiconductor business benefited from higher chip prices and stronger shipments of advanced memory products used in AI systems.
Samsung said it expects memory-chip demand to remain strong in the second half of the year as AI infrastructure expands and wider use of AI systems supports server-chip demand. In its earnings materials, the company said it had secured long-term supply contracts with five major global data-center clients and is speaking with additional technology companies.
The company also outlined manufacturing plans outside South Korea. It said construction on a second semiconductor fab in Taylor, Texas, is set to begin before the end of 2026, with production targeted for 2030. Separately, Samsung and SK Hynix said last month they plan a combined 800 trillion won investment in a new chipmaking hub in South Korea's southwest.
AP reported that Samsung and SK Hynix together account for about two-thirds of global memory-chip output, a sign of how concentrated the market has become. Read AP's report here. Samsung's earnings release is available here.
By the numbers
- 10.4 trillion won - Samsung's second-quarter operating profit, according to its July 30 earnings release.
- 74.6 trillion won - Record quarterly revenue reported by Samsung.
- 800 trillion won - Combined investment Samsung and SK Hynix said they plan for a new chipmaking hub in South Korea's southwest.
Yes, but: Samsung's outlook depends on whether AI-related memory demand stays strong and whether chip supply remains tight enough to support prices.
What's next: Samsung said it expects memory demand to stay strong in the second half of the year. It also plans to begin construction of its Taylor, Texas fab before the end of 2026.