Samsung Electronics reports record quarterly revenue driven by AI memory chip demand
Published: 30 Oct. 2025, 18:38
Updated: 30 Oct. 2025, 20:36
![Samsung Electronics showcases physical samples of its sixth-generation high-bandwidth memory HBM4 and HBM3E at its booth during the Semiconductor Exhibition 2025 at Coex in Gangnam District, southern Seoul on Oct. 22. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/10/30/39d3685e-9a8c-48f8-a2f8-608dca86c0c6.jpg)
Samsung Electronics showcases physical samples of its sixth-generation high-bandwidth memory HBM4 and HBM3E at its booth during the Semiconductor Exhibition 2025 at Coex in Gangnam District, southern Seoul on Oct. 22. [YONHAP]
Samsung Electronics reported record quarterly revenue, fueled by a surge in demand for memory chips used in AI servers. The company said Thursday that third-quarter operating profit from its semiconductor division reached 7 trillion won ($4.9 billion), the highest in its history.
The company confirmed that it is now supplying fifth-generation High Bandwidth Memory (HBM3E) to “all customers,” effectively acknowledging shipments to Nvidia. Sales of HBM3E rose more than 80 percent from the previous quarter, and the company said it has already secured clients for next year’s expanded production.
But Samsung Electronics' semiconductor operating margin of 21.1 percent still lags behind SK hynix’s 47 percent and Micron’s 35 percent. Industry focus has shifted to the timing and scale of Samsung Electronics’ HBM4 supply to Nvidia, as the significance of its foundry business grows.
Samsung Electronics posted revenue of 86.1 trillion won and operating profit of 12.2 trillion won for the third quarter, marking the highest quarterly revenue in its history. Revenue rose 9 percent and operating profit increased 3 percent from the same period last year.
Memory chips led the strong performance.
"Profitability improved due to increased sales of HBM3E, double data rate 5 (DDR5) and server solid-state drives (SSD), as well as rising product prices," Samsung Electronics said.
The surge in investment in AI has fueled demand for HBM, high-capacity DDR5 and server SSDs used in large-scale data centers. As memory suppliers focus production on these high-margin products, supply for mobile and PC memory has tightened, driving up prices across the board.
"Competition to build AI infrastructure remains intense, and demand for server memory has significantly outstripped industry supply," said Kim Jae-joon, chip division executive vice president at Samsung Electronics, adding that the situation is likely to continue into the fourth quarter.
He also highlighted the company’s recovery in HBM technology.
"With the growing competition in GPUs, major customers are demanding higher performance," Kim said. "From the development stage, HBM4 was designed to meet these needs in advance. It can deliver performance exceeding 12 gigabits per second with low power consumption."
Samsung Electronics has significantly expanded next year’s HBM production plan and has already secured demand for it.
“We’re also considering additional capacity expansion due to strong customer interest,” Kim said.
Samsung Electronics also said its foundry unit achieved record-high orders, centered on its advanced 2-nanometer process. The company in July signed a 23-trillion-won deal to manufacture chips for Tesla, and CEO Elon Musk recently said more chip production would be assigned to Samsung Electronics.
Industry analysts estimate that Samsung Electronics' foundry business, which posted a loss of around 2 trillion won in the second quarter, has reduced its deficit to around 1 trillion won this quarter.
Advanced foundry processes are critical to Samsung Electronics' semiconductor operations.
SK hynix manufactures base dies — a key HBM4 component — using TSMC’s 12-nanometer process, while Samsung Electronics uses its own 4-nanometer foundry. The Exynos 2600 application processor (AP), being tested for use in the Galaxy S26, is also being manufactured with Samsung Electronics' 2-nanometer process.
![SK hynix displays a physical sample of its sixth-generation high-bandwidth memory HBM4 at its booth during the Semiconductor Exhibition 2025 at Coex in Gangnam District, southern Seoul on Oct. 22. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/10/30/141800e8-03a3-4a69-a687-47855f6cd1b0.jpg)
SK hynix displays a physical sample of its sixth-generation high-bandwidth memory HBM4 at its booth during the Semiconductor Exhibition 2025 at Coex in Gangnam District, southern Seoul on Oct. 22. [YONHAP]
Samsung Electronics' mobile experience division saw revenue rise 12 percent on-year thanks to strong sales of the Galaxy Z Fold 7, maintaining double-digit profitability.
"Sixty percent of users access AI features weekly, and 80 percent do so monthly," the company said. "We plan to strengthen its AI leadership and push forward with innovative devices like its newly launched extended reality gear and tri-fold phones."
In contrast, the visual display and digital appliances divisions posted weak performance due to sluggish demand and U.S. tariffs. Combined sales fell 1 percent on-year to 13.9 trillion won, resulting in an operating loss of 100 billion won.
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 SHIM SEO-HYUN [[email protected]]
with the Korea JoongAng Daily
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