Samsung's record operating profit led by 70% margin semiconductor division

Samsung Electronics achieved its highest-ever quarterly operating profit in the second quarter, earning 89.5 trillion won. The semiconductor division, known as Device Solutions (DS), was the primary driver of this record performance, contributing nearly the entire profit with 89.2 trillion won and an impressive 70% operating profit margin.

The strong results in the DS division were fueled by robust market demand and competitive product offerings, particularly in DRAM and NAND flash memory. Samsung also bolstered its technological edge by expanding the supply of high-bandwidth memory (HBM) and shipping industry-first samples. The System LSI business set a new first-half revenue record despite a general demand slowdown, while the foundry business saw improved performance driven by HBM base die and increased demand from U.S. customers.

In contrast, the Device Experience (DX) division reported an operating loss of 800 billion won on sales of 48 trillion won. Although revenue increased year-over-year due to strong sales of premium and AI products, profitability declined because of rising component costs. The mobile experience (MX) business saw revenue growth from flagship models like the Galaxy S26 series and mid-range A series, but operating profit decreased due to industry-wide cost pressures.

Looking ahead, Samsung Electronics anticipates continued growth in the second half, largely propelled by the ongoing strong demand in the semiconductor market, especially with the expansion of generative AI. However, the DX division faces a challenging business environment marked by global uncertainties and increasing component costs. The company plans to strengthen its business competitiveness and improve its structure by focusing on high-value products like the Ultra models and the new Z8 foldable series to defend profitability.