Samsung’s chip division could out-earn 40 years of profits in one year
Samsung’s chip division is on track to surpass its cumulative operating profit from the past 40 years in a single year, marking a historic shift for the global semiconductor market. Speaking at an internal town hall, Samsung Electronics’ Device Solutions (DS) division head Kim Yong-Kwan said the unit’s 2026 operating profit is expected to exceed its entire earnings since entering the chip business in the 1980s—a milestone driven by surging demand for AI-related memory.
A surge powered by AI
The forecast stems from sharply higher contract prices for DRAM and NAND flash, as AI server demand outpaces supply. Analysts estimate Samsung’s full-year operating profit could reach 300 trillion won ($196 billion), with the second quarter alone nearing 84.6 trillion won ($55.1 billion). If realized, that would surpass Nvidia’s most recent quarterly operating profit of $53.54 billion, positioning Samsung as the world’s most profitable tech company for the period.
The numbers behind the shift
Samsung’s DS division accounted for 94% of the company’s first-quarter 2026 operating profit, totaling 53.7 trillion won ($35.1 billion). The division’s growth reflects rising prices for high-demand products like 12 GB LPDDR5X modules, which have climbed to about $145 each. Samsung has also signaled tighter supply through at least 2027, with contract price negotiations ongoing for the third quarter. Preliminary second-quarter results are due July 7, though final figures will include a profit-sharing agreement granting chip workers 10.5% of DS operating profit in stock, valued at up to $26.6 billion this year.
While the projections remain estimates, the trend underscores how AI is reshaping the semiconductor landscape, with Samsung and rival SK hynix poised to post combined quarterly profits near 150 trillion won when SK hynix reports on July 29.
Source: Tom's Hardware. AI-assisted editorial synthesis — TechnoExpress.