tech
April 30, 2026
Samsung reports record quarterly profit as chip income jumps almost 50-fold
The AI boom is worsening a global memory chip shortage, which Samsung predicts will continue into 2027
TL;DR
- Samsung Electronics reported record quarterly profit, with chip income soaring by 49 times.
- The company expects a severe memory chip supply shortage to worsen through 2027, driven by AI demand.
- Increased client spending on AI and the construction of AI datacenters are key factors in the demand surge.
- Samsung has secured multi-year binding contracts with customers to lock in supplies.
- Despite conflict in the Middle East, chipmaking has not been disrupted, though higher transportation costs are a risk.
- Profitability declined in Samsung's mobile and display divisions due to rising component costs.
- Unions representing Samsung workers in South Korea are considering striking over pay.
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