Samsung Electronics is projected to exceed 100 trillion won in operating profit for the third quarter, marking the first time in the company's history that a single quarter has achieved this milestone. Analysts attribute this significant growth to tight supply and rising prices in the memory semiconductor market, driven by the global artificial intelligence (AI) boom.
According to industry sources on September 27, the consensus for Samsung's consolidated operating profit for the third quarter, set to be announced early next month, is estimated to be around 106 trillion to 110 trillion won. If these projections hold true, the profit generated in just over a month during the third quarter would be nearly 2.5 times last year's total annual operating profit of 43.6 trillion won.
When combined with the cumulative operating profit of 146 trillion won from the first half of the year, the total operating profit for the third quarter is expected to surpass 250 trillion won.
The primary driver of this remarkable performance is undoubtedly the memory division within the semiconductor (DS) sector. Prices for next-generation DRAM standards, including DDR5 and LPDDR5X, as well as high-performance solid-state drives (SSDs) for enterprise use, have remained strong throughout the quarter.
Market research firm TrendForce estimates that the average selling prices (ASP) for DRAM and NAND flash in the third quarter have increased by approximately 10% to the mid-to-high teens compared to the previous quarter. Although the rate of increase has moderated from around 60% in the second quarter, the supply-demand dynamics have solidified, maintaining an upward trend.
Thanks to this memory boom, profitability metrics are soaring to unprecedented levels. Industry experts predict that the overall operating profit margin for the DS sector in the third quarter will reach at least the mid-70% range, with some forecasts suggesting that the operating profit margin for DRAM alone could exceed 80%.
The ramp-up in production and shipment of sixth-generation high-bandwidth memory (HBM4) has also contributed to the strong performance. Samsung's market share in the HBM sector surged to 33% in the second quarter, and its influence is expected to grow further as major clients adopt next-generation AI accelerators in the second half of the year.
However, there are disparities among different business units. The foundry (contract semiconductor manufacturing) and system LSI sectors are expected to continue facing operating losses of around 1 trillion won. The mobile (MX), TV, and home appliance (VD/DA) divisions are also showing signs of ongoing performance challenges.
Market experts anticipate that the tight supply conditions for memory semiconductors will persist at least until 2028. An industry insider noted, "While there are factors such as exchange rate volatility and changes in profitability due to the increasing share of HBM compared to general DRAM, the constraints on supply and the momentum from AI remain robust," adding that expectations for enhanced shareholder return policies will likely rise in line with these record-breaking performance trends.
* This article has been translated by AI.
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