Samsung posts record $80.5 billion profit on AI chip surge

Samsung Electronics reported operating profit of 107.4 trillion won, or $80.5 billion, for the third quarter on Thursday.

The figure sets a company record and marks the fourth consecutive quarter of peak earnings. Revenue for the July to September period climbed to an all-time high of 195.3 trillion won, equivalent to $146 billion. The financial surge was driven by high demand for computer memory chips integrated into artificial intelligence systems.

Samsung is one of two South Korean companies that control roughly two-thirds of the global memory market. Its domestic rival, SK Hynix, reported its own record third-quarter profit the day before Samsung filed its regulatory documents. Both firms face strong demand as global clients expand their AI infrastructure.

The company stated it expects demand for AI-related chips to accelerate through 2027, potentially outpacing available supply. Samsung plans to prioritize the production of advanced memory chips and storage products for AI servers. These include high-bandwidth memory chips, server DRAMs, and solid-state drives.

A major portion of this output will come from the Taylor plant, located roughly 40 miles northeast of Austin. The facility is expected to begin operations by the end of this year. During its earnings call, the company said it plans to strengthen its global supply capability with the start of operations at its first Texas fab.

Construction on a second factory in Taylor will begin next month. The sprawling campus in the Austin suburb could eventually house up to 10 semiconductor factories. This expansion is part of a wider strategy by South Korean tech firms to build out manufacturing and data center capacity to support national AI ambitions.

In June, Samsung and SK Hynix announced plans to invest a combined $599 billion in a new chipmaking hub in South Korea's southwest region. However, South Korea's central bank has warned that the trade-dependent economy is becoming too reliant on chips. The bank noted that such reliance could deepen the damage caused by any future downturn in the AI sector.