Samsung Electronics Posts 17% Revenue Jump on AI Chip Demand

Seoul, South Korea - Samsung Electronics reported a 17% year-over-year increase in third-quarter revenue to KRW 79.1 trillion (US$56.97 billion), driven by strong demand for artificial intelligence chips and new smartphone launches.

The South Korean tech giant's operating profit reached KRW 9.18 trillion (US$6.61 billion) in the quarter ended September 30, marking a decline from KRW 10.44 trillion in the previous quarter but significantly higher than KRW 2.43 trillion a year earlier.

The company's memory chip division posted revenue of KRW 22.27 trillion (US$16.04 billion), more than doubling from the previous year, as major data center and technology companies continued to invest in AI capabilities.

Samsung's mobile division recorded KRW 29.98 trillion (US$21.59 billion) in revenue, up 13% from the previous quarter, despite global inflation affecting consumer spending.

The strength of the Korean won against the U.S. dollar resulted in a negative impact of approximately KRW 0.5 trillion (US$360.1 million) on company-wide operating profit compared to the previous quarter.

The company's display unit, Samsung Display Corporation, generated KRW 8.0 trillion (US$5.76 billion) in revenue and KRW 1.51 trillion (US$1.09 billion) in operating profit, benefiting from major customer flagship product launches.

Samsung said it will begin mass production of 2-nanometer Gate-All-Around process chips to win new clients as it competes with Taiwan's TSMC in the advanced chip manufacturing sector.

The company expects memory demand for mobile and PCs to soften in the fourth quarter, while growth in AI will maintain robust demand levels.

Samsung's operating margin declined to 11.6% in the third quarter from 14.1% in the previous quarter, while its EBITDA margin decreased to 25% from 27%.

According to its earnings report, the tech giant maintains 360 million users on its SmartThings platform and delivers over 500 million diverse products to consumers globally each year.

For 2025, Samsung plans to focus on enhancing competitiveness in advanced technologies and strengthening leadership in premium products amid ongoing macroeconomic uncertainties.

The company's inventory levels improved during the quarter as it actively responded to demand for AI and server products while depleting aging inventories of legacy products.