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FinanceSamsung Electronics Q2 chip profit surges over 250-fold, sees robust AI demand and tight chip supply in 2026
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Samsung Electronics reported a massive surge in its second-quarter chip profit, with its semiconductor division posting an operating profit of US$61.1 billion, representing a more than 250-fold increase year-over-year. The company attributed the strong performance to robust demand for artificial intelligence (AI) applications and expects this trend to continue, forecasting tight chip supply conditions through 2026. However, the surging chip prices negatively impacted Samsung's mobile division, which reported a loss of US$479.5 million. The results highlight the diverging fortunes within Samsung's business segments, driven by the global AI boom and its effect on semiconductor pricing and availability.
Source report
SEOUL — Samsung Electronics reported a dramatic surge in its second-quarter semiconductor profit, driven by strong demand for artificial intelligence (AI) applications and tightening chip supply.
The South Korean tech giant's semiconductor division posted an operating profit of US$61.1 billion, marking a more than 250-fold increase compared to the same period last year.
Key Highlights
- Chip Division Performance: The semiconductor business recorded an operating profit of US$61.1 billion, reflecting a massive year-on-year leap.
- AI Demand Outlook: Samsung expects robust demand for AI-related chips to continue through 2026.
- Supply Constraints: The company anticipates tight chip supply conditions to persist, supporting pricing power.
Challenges in Mobile Division
Despite the strong chip earnings, surging chip prices negatively impacted Samsung's mobile division, which reported a loss of US$479.5 million in the second quarter.
Photo: REUTERS
Source
The Business TimesRegional
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Samsung Posts Over 250-Fold Rise in Q2 Chip Profit; Expects Robust AI Demand, Tight Chip Supply in 2026