Samsung Electronics posts 12 trillion won operating profit in Q3 amid chip rebound

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Samsung Electronics posts 12 trillion won operating profit in Q3 amid chip rebound

Published: 14 Oct. 2025, 09:31 Updated: 14 Oct. 2025, 15:19

Audio report: written by reporters, read by AI

A Samsung Electronics logo and a computer motherboard appear in this illustration taken on Aug. 25 [REUTERS/YONHAP]

Samsung Electronics posted an operating profit in the 10 trillion won ($7 billion) range in the third quarter for the first time in over a year, driven by a rebound in the global semiconductor industry and spurred by surging demand for AI, as well as robust smartphone sales.

Samsung Electronics on Tuesday announced a preliminary consolidated earnings report of 86 trillion won in revenue and 12.1 trillion won in operating profit for the July to September period.

Compared to the same period last year, revenue and operating profit rose 8.72 percent and 31.81 percent, respectively. The figures exceeded the average estimates of securities firms compiled by market tracker FnGuide, which forecast 84.12 trillion won in revenue and 10.14 trillion won in operating profit. This marks the first time Samsung has posted over 80 trillion won in quarterly revenue.

While the detailed performance of each division will be disclosed in the finalized earnings report later this month, industry observers estimate the Device Solutions division — responsible for semiconductors — earned between 5 trillion and 6 trillion won in operating profit. That would represent more than a 10-fold increase from the previous quarter, when the division earned about 400 billion won.

A key driver was continued demand for high bandwidth memory (HBM), fueled by the spread of AI. Chae Min-sook, an analyst at Korea Investment & Securities, noted that “Samsung’s HBM revenue in the third quarter rose 98 percent compared to the previous quarter, which will lead to an increase in average selling prices.”

General DRAM prices surge, foundry losses narrow

A sharp rise in the price of general-purpose DRAM also contributed significantly to improved profitability. According to market tracker DRAMeXchange, the average fixed transaction price of DDR4 8-gigabit DRAM for PCs in September was $6.30 — up 10.53 percent from the previous month. This was the first time the product’s price exceeded $6 since January 2019, or in six years and eight months.

As memory chipmakers such as Samsung Electronics and SK hynix prioritized the production of high-value-added HBM over general-purpose products, supply shrank while demand held steady, driving prices upward.

Another positive factor was a reduction in losses at Samsung’s foundry business, long seen as a weak spot. Cha Yong-ho, an analyst at LS Securities, forecast that foundry operating losses in the third quarter would narrow to around 700 billion won from 2.9 trillion won in the second quarter of 2025, citing higher utilization rates and fewer one-off costs.

A customer looks at the Galaxy Z Fold 7 foldable smartphone at the Galaxy Studio store inside The Hyundai department store in Yeouido, western Seoul, on July 23. [NEWS1]

Smartphone sales also support growth

Samsung’s Mobile eXperience division, which has played a key role throughout the year, also bolstered earnings.

Analysts estimate the division contributed to around 3 trillion won in operating profit. The success of the new foldable smartphones launched in July — which set a record for most preorders ever — is seen as a major factor. Last month, Samsung unveiled the Galaxy S25 FE, a value model positioned below its flagship Galaxy S25 but above the budget A series, in a bid to target global smartphone markets.

However, the TV and home appliance division is estimated to have posted between 200 billion and 400 billion won in operating profit — down from 530 billion won in the same period last year — due to weak global demand and tariffs.

Amid growing expectations of a “semiconductor supercycle,” the market increasingly sees the third quarter as a turning point for Samsung’s earnings recovery. Samsung is currently supplying 12-layer HBM3E (fifth-generation) chips to U.S. chipmaker AMD and recently secured a supply agreement with OpenAI, the developer of ChatGPT, accelerating efforts to expand market share. Morgan Stanley, which predicted a prolonged chip downturn earlier this year, revised its outlook in a Sept. 21 report, citing a strong growth in AI since April that is driving a new supercycle in tech.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY YI WOO-LIM [[email protected]]