Samsung Semis Soar, Phones Sink

Samsung just posted record profits thanks to surging demand for AI memory chips, but there’s a twist — its semiconductor division is flying high while the smartphone and consumer electronics arm is bleeding red ink for the first time ever. The numbers are stark: over 99% of Samsung’s Q2 profit came from semis like DRAM and HBM memory, driven by hyperscalers snapping up next-gen chips, while rising memory costs have hammered its own device margins and triggered a loss in smartphones. With MX’s profit set to swing from a multi-trillion-won gain to a projected 5.8 trillion won loss this year, the big question is whether Samsung will rebalance internally or let its divisions fight it out.

But here’s the catch: as Samsung plows investment into cutting-edge memory—like new zHBM stacks and 400-layer NAND—consumer tech gets squeezed. AI is crowding out capacity for smartphones and PCs, and the company’s bet on “memory plus packaging” raises both the stakes and the risks. And a headline-grabbing $200 billion MOU with Broadcom for advanced foundry and packaging is promising, but still just a framework—actual demand will depend on Samsung’s ability to deliver on 2nm tech and reel in new customers.

Based on reporting from PhoneArena, chosun.com, koreajoongangdaily.com, 아시아경제, and 헤럴드경제.

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