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Samsung’s operating profit surged nearly ninefold to a record 107.4 trillion won as its semiconductor division benefited from AI demand, but the company expects the memory chip supply crunch to worsen in 2027
Samsung Electronics reported a record operating profit of 107.4 trillion won (around $80.04 billion) for the third quarter, nearly nine times its earnings a year earlier, as booming demand for artificial intelligence (AI) chips lifted its semiconductor business. However, the company warned that the global memory chip shortage would deepen in 2027, while its shares fell 4.6 per cent in early trade.
The world’s largest memory chipmaker reported operating profit of 12.2 trillion won in the July-September quarter last year. Its latest results were in line with its earlier estimate.
Samsung’s semiconductor division accounted for almost all the group’s operating profit, posting earnings of 106.5 trillion won, a nearly 15-fold increase from a year earlier.
AI demand set to outstrip chip supply
Samsung expects the gap between memory chip demand and supply to widen next year as investment in AI infrastructure expands.
“In 2027, the (memory) business expects AI infrastructure capital expenditure to reach a historic level as the AI ecosystem expands,” the company said in a statement.
It added that rising demand driven by AI would far exceed industry supply compared with 2026.
The warning echoes the outlook from South Korean rival SK Hynix, which reported strong quarterly earnings on Wednesday and offered an upbeat assessment of demand. The two companies’ results have helped ease concerns that earnings from the AI chip boom could lose momentum.
More from BusinessHowever, uncertainty remains over how long technology companies will continue spending heavily on AI infrastructure. Concerns about financing these investments and rising competition from China have weighed on chip stocks in recent months.
Chip boom brings challenges for other businesses
The surge in memory chip demand is also creating cost pressures for manufacturers that use these components in their products. Higher memory prices can increase production costs for smartphones, computers and other consumer electronics, potentially squeezing margins if companies cannot pass those costs on to customers.
For Samsung, the challenge is to sustain its gains in the semiconductor business while managing costs across its broader electronics operations.
The company also announced a dividend payment of 30 trillion won for the third quarter, equivalent to 4,601 won per share.
