Semiconductor 'Peak-Out' Fears Unfounded as Samsung Electronics Earns 90 Trillion Won from Memory Alone in Q2

Samsung Electronics' memory business appears to have generated a staggering 90 trillion won in operating profit during the second quarter, according to industry analysis. This figure emerges despite growing concerns across the semiconductor industry about a potential 'peak-out,' a point where growth begins to decline. However, Samsung's performance suggests its profit-generating capacity may actually be strengthening.

The broader semiconductor industry acknowledges that price increases might slow down. Yet, common industry sentiment indicates that the current cycle is far from over. This outlook is driven by persistent supply shortages and robust demand, particularly from the artificial intelligence (AI) sector. "The peak-out concerns recently raised are limited to stock prices reflecting future value," explained one industry official. "The semiconductor market situation is far from a peak-out."

Overall, Samsung Electronics' consolidated revenue for the second quarter is estimated at 171 trillion won, with an operating profit of 89.4 trillion won, surpassing market expectations. Industry interpretations suggest that after accounting for provisions for performance bonuses in the first half of the year, the actual operating profit could range between 100 to 107 trillion won. This underscores the significant financial strength of Samsung's memory division.

“

The peak-out concerns recently raised are limited to stock prices reflecting future value. The semiconductor market situation is far from a peak-out.