Samsung posts record profit, giant dividend

Samsung just posted the biggest profit in tech history, thanks to sky-high demand for AI memory chips. The company raked in a record 107.44 trillion won in quarterly profit—fueling a massive 30 trillion won cash dividend. But behind the headlines, Samsung’s smartphone division is hurting: higher memory costs pushed up phone prices and sent its mobile unit into the red, forcing a pivot toward premium devices and creative financing to protect margins.

But here’s the catch: as AI memory gets scarcer, Samsung’s own chip dominance comes at a cost. To serve Nvidia’s next wave of AI hardware, Samsung may rely on rival TSMC’s 3nm chip-making tech for a key part of its custom high-bandwidth memory (HBM). This move could give TSMC more control in the AI supply chain, while Samsung bets on volume—risking margin and some strategic ground. Meanwhile, in mobile, Samsung is shifting its Galaxy lineup toward high-end models and leaning on installment payments, especially in emerging markets like Africa, to keep sales growing even as global demand softens.

With the AI gold rush, memory makers win—but the lines between friend and foe are blurring. Based on reporting from Reuters, Taiwan News, ChosunBiz, TechInsights, and ETNews.

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