Samsung Electronics expects record quarterly profit on AI boom

The South Korean government has committed to becoming one of the world's top three AI powers, alongside the United States and China. Samsung has positioned itself as a key player — together with fellow South Korean firm SK hynix — in supplying high-performance chips in demand from companies racing to keep up with the rapidly evolving AI industry. The company also stated in a regulatory filing that its sales are expected to reach 133 trillion won (£88 billion) in the three months ending in March, representing a 68 per cent increase compared to the same period last year. This positive outlook comes despite risks to the global semiconductor supply chain if the war in the Middle East continues.

A South Korean ruling party legislator told journalists last month that officials from Samsung and other firms had expressed concern about possible disruptions to chip production if some essential supply chain materials, such as helium, cannot be obtained from the Middle East.

Pushing up prices

Samsung has received substantial orders from major technology companies for high-bandwidth memory — a type of chip used in data centres and AI "accelerators," which are essential for executing demanding tasks and computations. This trend is also increasing the cost of less prominent chips used in consumer electronics, potentially leading to higher prices for phones, laptops, and other devices globally. Riding the AI boom, Samsung's shares have surged by over 240 per cent in the past year. The company did not release earnings details from its individual divisions, such as the chip and mobile sectors.

Taipei-based research firm TrendForce predicts that revenue in the memory chip industry will peak at more than $840 billion globally by 2027. Samsung has already allocated billions of dollars to expand its chip manufacturing facilities, committing to ongoing investment in "transitioning to advanced manufacturing processes and upgrading existing production lines to meet rising demand." Experts say this move will help Samsung seize opportunities in the increasingly competitive race for chips vital to AI infrastructure. Samsung is expected to release its final quarterly earnings report at the end of April. The firm's shares increased by 0.73 per cent during afternoon trading in Seoul.