Samsung's Q2 profit hits record 89.5 trillion won, driven by AI chip boom

Samsung Electronics has achieved a historic operating profit of 89.5 trillion won in the second quarter, driven overwhelmingly by its semiconductor division amidst a surge in demand for AI memory. The company's revenue reached 171.5 trillion won, with the Device Solutions (DS) division alone posting an operating profit of 89.2 trillion won. This figure represents a staggering 223-fold increase compared to the same period last year and a 66% jump from the previous quarter's record earnings.

This remarkable performance places Samsung's quarterly profit among the highest ever recorded by a global tech company. The soaring profitability in the semiconductor sector is attributed to the sharp rise in memory chip prices, significantly boosting the profitability of key products. The company's success in the AI memory market appears to be a major catalyst for this unprecedented financial result.

In stark contrast, Samsung's Device Solutions (DX) division, which encompasses smartphones and other finished products, reported an operating loss of 800 billion won on revenue of 48 trillion won. This marks the first quarterly deficit for the DX division since records began in 2011. Analysts suggest that the increased cost of memory chips, coupled with decreased demand and rising raw material prices, contributed to this downturn.