Samsung Reports Record Profit Driven by AI Chip Demand

Samsung Electronics has reported a record operating profit of 107.4 trillion won ($80.5 billion) for the last quarter, driven by a surge in demand for its computer memory chips used in artificial intelligence systems. The company's revenue also reached an all-time high of 195.3 trillion won ($146 billion) during the July-September period, marking the fourth consecutive quarter of record profit and revenue.

This announcement follows a similar record profit report from domestic rival SK Hynix. Together, these South Korean semiconductor companies control approximately two-thirds of the global memory market. Samsung stated it anticipates the demand for its AI-related chips to accelerate through 2027, potentially outpacing supply as clients work to expand their AI infrastructure. The company plans to prioritize supplying advanced memory chips and storage products for AI servers, including high-bandwidth memory chips, server DRAMs, and solid-state drives.

Samsung and SK Hynix have announced substantial investments in semiconductor manufacturing facilities and data centers in South Korea. In June, they committed to investing a combined 800 trillion won ($599 billion) in a new chipmaking hub in the country's southwest region to capitalize on AI-driven market growth.

However, some analysts express concerns about the long-term viability of these significant investments. South Korea's central bank has also cautioned that the nation's economy, heavily reliant on trade, is becoming overly dependent on the semiconductor industry. This dependence, the bank warned, could exacerbate the impact of any future downturn in the AI sector.