▲ Samsung Electronics
Samsung Electronics recorded a preliminary operating profit of 89.4 trillion won for the second quarter, a figure that exceeds 106 trillion won when excluding provisions for performance bonuses.
This means the company earned more in a single quarter than its combined operating profit over the past three years.
As global demand for artificial intelligence (AI) investments continues to surge, leading to a severe shortage in memory supply, Samsung is expected to focus on securing investment capital to expand its production capacity (CAPA) to meet this demand.
According to industry sources on July 7, the 89.4 trillion won in preliminary operating profit announced by Samsung Electronics today for the second quarter of this year excludes approximately 17 trillion won set aside as provisions for performance bonuses.
Samsung's labor and management previously reached a wage agreement centered on providing special performance bonuses funded by 10.5% of the operating profit from the semiconductor (Device Solutions, or DS) division.
Considering the approximately 6 trillion won in performance bonuses from the first quarter, when negotiations were still underway, and the 11 trillion won for the second quarter, Samsung's operating profit for the second quarter of this year is estimated to be approximately 106.5 trillion won.
This marks a record-breaking performance, surpassing the 100 trillion won mark in quarterly operating profit for the first time.
Even when factoring in the performance bonus provisions, the profit significantly exceeds the total operating profit of 82.9 trillion won recorded over the past three years from 2023 to 2025.
This growth is attributed to the sharp rise in prices for DRAM, NAND, and other memory products, driven by a widespread supply shortage as global AI infrastructure investments continue.
The operating profit margin for Samsung Electronics' DS division is projected to be around 80%.
DRAM and NAND prices have seen a steep upward trend, rising 80–85% in the first quarter of this year compared to the previous quarter, and another 50% in the second quarter.
According to market research firm Counterpoint Research, the memory market is expected to reach approximately 350 trillion won in the second quarter of this year, a growth of over 60% compared to the previous quarter.
As the company with the largest production capacity among the three major memory manufacturers, Samsung Electronics is the primary beneficiary of the overall memory shortage.
In particular, analysts point out that the company has significantly boosted its performance by successfully recovering market share in the High Bandwidth Memory (HBM) sector, starting with the 6th-generation HBM4.
After becoming the world's first to mass-produce and ship HBM4 on February 12, Samsung Electronics surpassed 1 billion dollars (approximately 1.54 trillion won) in related revenue in about four months, marking an industry first.
It is reported that the figure has recently exceeded 1.2 billion dollars (1.85 trillion won).
Samsung Electronics' HBM4 will be integrated into the next-generation AI accelerator Vera Rubin, which NVIDIA is set to launch in the second half of the year.
Samsung is also leading in the development and yield stabilization of its next-generation product, HBM4E.
Following the delivery of HBM4E 12-layer samples to major clients at the end of May, it was reported that the company stated during a recent internal management briefing that the yield for HBM4E reliability tests has reached over 70%.
Considering that a yield of 80% or higher is typically considered the stable range for mass production, this suggests the development is in its final stages.
Samsung Electronics is expected to generate an operating profit of approximately 370 trillion won this year.
There are also projections that an annual operating profit in the 500 trillion won range could be achievable next year.
The cash assets secured through these earnings are expected to be invested in expanding production bases both domestically and internationally.
This is because the global memory supply shortage has intensified competition for facility investment across the industry.
Samsung Electronics is currently pushing to expand its production hubs with the goal of building a total of six semiconductor fabrication lines at the Yongin National Industrial Complex.
Construction of the P5 1 and 2 plants at the Pyeongtaek Campus is also underway.
Furthermore, the company plans to invest 400 trillion won to build two memory fabs in the Honam region.
The company plans to invest a total of 2,050 trillion won, including 1,650 trillion won in Yongin and existing semiconductor complexes, and 400 trillion won in the Honam region.
(Photo: Courtesy of Samsung Electronics, Yonhap News)
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