AI memory boom pushes Samsung’s semiconductor profit to USD to 80B as smartphone margins come under pressure.
Samsung Electronics reported third-quarter 2026 consolidated revenue of KRW 195.3 trillion (approximately USD 146 billion. The operating profit reached KRW 107.4 trillion (approximately USD 80 billion. This is the first time a global technology company has exceeded KRW 100 trillion in quarterly operating profit. The revenue increased 14% QOQ. The semiconductor business was the primary contributor to the record performance, supported by strong global demand for AI memory chips. Samsung reported its fourth consecutive quarter of record financial results.
Samsung’s Device Solutions (DS) division, which handles semiconductors, reported revenue of KRW 147.1 trillion (approximately USD 110 billion. The operating profit was KRW 106.5 trillion (approximately USD 80 billion).
Counterpoint Research reported that standard DRAM prices increased from their historical range of 20-30 cents per gigabit to approximately USD 2 per gigabit. Samsung reported operating margins of DRAM 79% and NAND flash 72%. HBM4 prices are expected to reach USD 4 per gigabit as demand for high-bandwidth memory increases. Higher memory prices are increasing the bill-of-materials costs for smartphone manufacturers.
The pressure is already visible in Samsung’s mobile business. Its Mobile eXperience (MX) and Networks division reported revenue of KRW 37.7 trillion (approximately US$28.21 billion), but recorded an operating loss of KRW 0.6 trillion (approximately US$450 million).
“The [consumer electronics] MX division continues to suffer from high memory pricing,” said MS Hwang, Research Director at Counterpoint Research. “Since low-end models are expected to continue losing money, Samsung may scale back its volume contribution, implying further correction in market volume dynamics in the supply chain.”
Samsung, meanwhile, is increasing its focus on advanced memory. The company significantly scaled up HBM4 sales and secured multi-year supply agreements with 10 key customers. Its HBM capacity is sold out through 2027, while SK Hynix has said its capacity is committed through 2029. Samsung expects continued AI infrastructure investment to keep memory demand ahead of supply.
