Quarterly revenue reached 195.3 trillion won
South Korean technology company Samsung Electronics reported on Thursday that operating profit for the July-September quarter reached a record 107.4 trillion won ($80.5 billion). The company attributed the increase to surging demand for computer memory chips used in artificial intelligence systems.
Revenue for the same period rose to an all-time high of 195.3 trillion won ($146 billion). The results extended Samsung’s record profit and revenue streak to a fourth consecutive quarter, according to its regulatory filing.
The filing came a day after domestic rival SK Hynix also reported record third-quarter profit. The Associated Press reported that the two South Korean semiconductor giants together control about two-thirds of the global memory market.
Samsung said in a statement that it expects demand for its AI-related chips to accelerate through 2027 and outpace supply as clients race to expand AI infrastructure. Samsung said it will focus on advanced memory chips and storage products used in AI servers, including high-bandwidth memory chips, server DRAMs and solid-state drives.
South Korean technology companies have been making major investments in semiconductor manufacturing facilities and data centers as the country expands its AI ambitions. In June, Samsung and SK Hynix announced plans to invest a combined 800 trillion won ($599 billion) in a new chipmaking hub in South Korea’s southwest to capitalize on AI-driven demand.
The Associated Press reported that some analysts questioned whether the spending would ultimately pay off.
South Korea’s central bank warned that the country’s trade-dependent economy was becoming too reliant on chips. It said that dependence could deepen the damage of any AI-related downturn.