Samsung Electronics achieved record quarterly results in its semiconductor business, driven by a surge in demand for artificial intelligence (AI). However, the DX (Device Solutions) division, which includes smartphones and home appliances, reported a loss due to rising component costs.
On July 30, Samsung announced that its consolidated operating profit for the second quarter reached 89.5 trillion won, a staggering increase of 1813.8% compared to the same period last year.
Revenue totaled 171.5 trillion won, marking a 130% year-on-year increase. Net profit soared to 71.6 trillion won, up 1299.9%. The operating profit margin reached a record high of 52.18%.
Both revenue and operating profit set new quarterly records. Earnings per share for common and preferred stocks rose 52% from the previous quarter to 10,849 won.
The semiconductor division, known as DS (Device Solutions), was the primary driver of these results, generating 127.5 trillion won in revenue and 89.2 trillion won in operating profit, accounting for nearly all of the company's operating profit. The operating profit margin for the semiconductor division climbed to 70%.
In the memory sector, Samsung responded to the growing demand for high-performance memory for servers driven by the expansion of AI, achieving record sales in both DRAM and NAND products. The company is also expanding its supply of sixth-generation high-bandwidth memory (HBM4) and has shipped samples of HBM4E, becoming the first in the industry to do so, positioning itself in the next-generation HBM market.
Despite a general slowdown in demand, the System LSI business achieved its highest revenue for the first half of the year, thanks to increased sales of mobile system-on-chips (SoCs) and image sensors. The foundry business also saw improved revenue due to rising demand for AI and high-performance computing (HPC) from U.S. customers.
In contrast, the DX division, which encompasses smartphones, TVs, and home appliances, recorded revenue of 48 trillion won but reported an operating loss of 800 billion won, marking its first loss since its inception.
The MX (Mobile) division saw increased sales from the Galaxy S26 series and A series, but profitability declined due to rising memory and component costs. Home appliances benefited from seasonal demand for air conditioners, leading to increased sales, but profits fell due to rising costs. However, the VD (Video Display) division improved its revenue and profitability due to special events and new product launches.
Harman reported revenue of 4.6 trillion won and operating profit of 400 billion won, driven by the expansion of its automotive business and strong sales of portable audio products. The display segment generated 7.5 trillion won in revenue and 700 billion won in operating profit.
The strong dollar also positively impacted results, contributing approximately 3.1 trillion won to overall operating profit, particularly in the components business.
Samsung is also increasing investments to secure future competitiveness, with R&D spending reaching a record 16 trillion won in the second quarter.
Looking ahead, growth is expected to continue in the semiconductor sector in the second half of the year.
The memory division plans to expand sales of high-performance products, including HBM4, HBM4E, DDR5, SOCAMM2, and eSSD, while the foundry division will focus on mass production of 2-nanometer second-generation mobile processes and expanding AI and HPC orders.
The DX division aims to defend profitability by increasing the proportion of high-end products. The MX division will focus on expanding sales of the Galaxy Z8 series and ultra models, while the VD and home appliance divisions will prioritize sales of premium products enhanced with AI features.
* This article has been translated by AI.
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