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Samsung Eyes Record Profit on Memory Chip Surge
5 Oct
Summary
- Samsung expects a record quarterly profit driven by memory chip demand.
- Third-quarter operating profit projection nears $80.2 billion.
- Device Solutions division anticipates a 72-75% operating margin.
Samsung Electronics is on the cusp of reporting a record quarterly profit, driven by an exceptional surge in demand for memory semiconductors. Projections indicate an operating profit of approximately 108.1 trillion won ($80.2 billion) for the third quarter, a remarkable increase compared to the previous year.
Revenue for the July-September period is forecasted to reach 201.7 trillion won ($148.0 billion), marking a significant year-on-year climb. This performance is expected to surpass the company's previous record set in the prior quarter.
The robust growth is largely fueled by Samsung's semiconductor operations. Demand for DRAM and NAND solutions, including enterprise solid-state drives, remains strong. The company's market share in high-bandwidth memory (HBM) has also notably expanded.
The Device Solutions division, overseeing semiconductor operations, is expected to post an operating margin between 72% and 75%. Within this division, the DRAM unit, encompassing HBM and standard memory, could see its operational margin exceed 80%.
In contrast, the contract manufacturing and System LSI units are facing pressures and are projected to remain in negative territory for the third quarter, with profitability for the contract manufacturing unit expected around 2028.
The Device Experience division, responsible for consumer electronics and mobile devices, is also anticipating an expanded operating loss due to plateauing demand and rising input costs.
