By Kang Jin-kyu
Seoul (AFP) Jan 29, 2026
South Korean tech large Samsung Electronics posted document quarterly income Thursday, driving huge market demand for the reminiscence chips that energy synthetic intelligence.
A world frenzy to construct AI information centres and develop the fast-evolving expertise has despatched orders for superior excessive?bandwidth reminiscence microchips hovering.
That can also be pushing up costs for much less flashy chips utilized in shopper electronics — threatening greater costs for telephones, laptops and different units worldwide.
Within the quarter to December 2025, Samsung stated it noticed “its highest-ever quarterly consolidated income at KRW 93.8 trillion (US$65.5 billion)”, a quarter-on-quarter enhance of 9 %.
“Working revenue was additionally an all-time excessive, at KRW 20.1 trillion,” the corporate stated.
The dazzling earnings got here a day after a key competitor, South Korean chip large SK hynix, stated working revenue had doubled final yr to a document excessive, additionally buoyed by the AI growth.
The South Korean authorities has pledged to turn into one of many prime three AI powers, behind the US and China, with Samsung and SK hynix among the many main producers of high-performance reminiscence.
Samsung stated Thursday it expects “AI and server demand to proceed growing, resulting in extra alternatives for structural progress”.
Annual income stood at 333.6 trillion received, whereas working revenue got here in at 43.6 trillion received. Gross sales for the division that oversees its semiconductor enterprise rose 33 % quarter-on-quarter.
The corporate pointed to a $33.2 billion funding in chip manufacturing services — pledging to proceed spending in “transitioning to superior manufacturing processes and upgrading current manufacturing strains to satisfy rising demand”.
– ‘Clearly again’ –
Main electronics producers and business analysts have warned that chipmakers specializing in AI gross sales will trigger greater retail costs for shopper merchandise throughout the board.
This week US chip agency Micron stated it was constructing a $24 billion plant in Singapore in response to AI-driven demand that has triggered a worldwide scarcity of reminiscence elements.
SK hynix introduced Wednesday that its working revenue had doubled final yr to a document 47.2 trillion received.
The corporate’s shares have surged some 220 % over the previous six months, whereas Samsung Electronics has risen about 130 %, a part of an enormous international tech rally fuelled by optimism over AI.
Each corporations are on the cusp of manufacturing next-generation high-bandwidth “HBM4” chips for AI information centres, with Samsung reportedly as a consequence of begin making them in February.
American chip large Nvidia — now the world’s most beneficial firm — is anticipated to be one in all Samsung’s prospects for HBM4 chips.
However Nvidia has reportedly allotted round 70 % of its HBM4 demand to SK hynix for 2026, up from the market’s earlier estimate of fifty %.
“Samsung is clearly again and we expect them to indicate a major turnaround with HBM4 for Nvidia’s new merchandise — serving to them transfer previous final yr’s high quality points,” Hwang Min-seong, analysis director at market evaluation agency Counterpoint, informed AFP.
However SK nonetheless “maintains a market lead in each high quality and provide” of plenty of key elements, together with Dynamic Random Entry Reminiscence chips utilized in AI servers, he stated.
SK additionally this week stated it’s going to arrange an “AI options agency” in the US, committing $10 billion and weighing investments in US corporations.
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