Samsung Electronics reported a 750 % year‑on‑year increase in operating profit for the first quarter, reaching a record 57.2 trillion won (US$38.4 billion). The surge was driven by strong demand for high‑performance chips used in artificial‑intelligence (AI) applications, and the company expects the momentum to continue over the next three months.
The South Korean conglomerate, together with rival SK Hynix, is supplying AI‑critical memory and processor components to global technology firms that are expanding AI infrastructure. In its earnings release, Samsung said the results were achieved “through AI technology innovations and proactive market response.” Net profit rose to 47.1 trillion won, surpassing Bloomberg analysts’ forecasts, while total sales hit an all‑time quarterly high of 133.9 trillion won.
The memory division contributed the bulk of the profit, posting 53.7 trillion won. Samsung attributed the performance to “high‑value‑added AI demand” and industry‑wide price increases for memory products. The company anticipates “strong memory demand to continue” in the second quarter as AI data‑center construction accelerates.
Chief financial officer Park Soon‑cheol dismissed concerns that the Middle‑East conflict could disrupt the supply chain, noting that semiconductor production lines are operating normally and that logistics routes are secured through diversified trading partners in the United States, Japan and other regions.
The earnings release coincided with a rise in South Korea’s Kospi index, which briefly cleared the 6,700‑point level after strong results from US tech giants Microsoft and Alphabet. Samsung’s shares, however, were slightly lower in early morning trading.
The record profits underscore the South Korean government’s ambition to position the country among the world’s top three AI powers, alongside the United States and China. Nevertheless, Samsung faces domestic challenges. Workers at the Pyeongtaek plant have announced a potential strike from 21 May to 7 June, demanding a 7 % wage increase, the removal of a bonus cap and additional benefits. The company warned it will take all legally permissible measures to keep production uninterrupted.
In parallel, Samsung is defending a U.S. patent lawsuit alleging that its Galaxy Z Fold, Z Flip and Z TriFold devices infringe on foldable‑smartphone technology patents.
SK Hynix also reported a near‑400 % jump in first‑quarter net profit, highlighting the broader strength of Korea’s semiconductor sector amid the AI boom.
The results illustrate the pivotal role of AI‑driven demand in shaping the technology industry and signal continued growth for chipmakers that can meet the performance requirements of next‑generation applications.
