Samsung reports record profit for Q2 driven by AI chip demand
South Korean technology giant Samsung Electronics reported a record operating profit for the second quarter, driven by strong demand for AI-related memory chips. The company's semiconductor division was the primary contributor to the earnings surge.
Samsung Electronics announced on Thursday a record operating profit of 89.5 trillion won (approximately $62 billion) for the April-June period. The company attributed the significant increase to the booming global demand for artificial intelligence applications and server hardware.
The semiconductor business, particularly its high-bandwidth memory (HBM) chips crucial for AI, was the main driver of the profit. This performance offset operating losses in its mobile, TV, and home appliance divisions. Samsung also recorded an all-time high quarterly revenue of 171.5 trillion won ($119 billion).
Looking ahead, Samsung expects demand for its memory products to remain robust in the latter half of the year, fueled by ongoing expansion of AI infrastructure. The company is investing in increased production capacity, with plans to commence construction of a second semiconductor fabrication plant in Taylor, Texas, before the end of this year, aiming for production startup by 2030.
The company stated it has secured long-term supply contracts with major global data center clients and is in discussions with other technology firms to meet the escalating demand for AI infrastructure.