With the artificial intelligence (AI) industry surging and the memory chip market entering a super-boom, Samsung Electronics said it posted more than 20 trillion won in operating profit in the fourth quarter of last year. Samsung Electronics not only broke its own quarterly operating profit record set in the third quarter of 2018, but also became the first domestic corporations to surpass 20 trillion won in operating profit.
On the 29th, Samsung Electronics said in a filing that it recorded sales of 93.8374 trillion won and operating profit of 20.0737 trillion won in the fourth quarter of last year. On an annual basis, Samsung Electronics said sales came to about 333.6 trillion won and operating profit to about 43.6 trillion won.
Specifically, the Device Solutions (DS) institutional sector, which oversees the semiconductor business, posted sales of 44 trillion won and operating profit of 16.4 trillion won. The memory business unit recorded its highest-ever quarterly sales and operating profit by responding aggressively to strong demand for general-purpose DRAM and expanding HBM sales. Operating profit also increased as memory prices rose and sales of high value-added products such as server DDR5 and corporations SSDs expanded.
In system semiconductors, the System LSI business unit saw results decline from the previous quarter due to seasonal demand shifts, but sales grew as image sensors benefited from expanded sales of new 200-megapixel and big-pixel 50-megapixel products. The foundry (contract chip manufacturing) business unit ramped up mass production of first-generation 2-nanometer (nm; 1 nm is one-billionth of a meter, 18A) products and saw sales rise on strong customer demand in the United States and China, but said profitability improvement was limited due to the impact of provisioning expense.
The Device eXperience (DX) business institutional sector, which handles finished products, posted sales of 44.3 trillion won and operating profit of 1.3 trillion won. The MX business unit, which oversees mobile, saw fourth-quarter shipments decline as the boost from new model launches faded, but recorded double-digit revenue profitability for the year thanks to sales growth of flagship products and stable sales of tablets and wearables.
The VD business unit expanded sales from the previous quarter on solid sales of premium products such as Neo QLED and organic light-emitting diode (OLED) TVs and by meeting peak-season demand. Home appliances saw results decline as the seasonal off-season persisted and due to the impact of global tariff.
Samsung Display recorded sales of 9.5 trillion won and operating profit of 2 trillion won in the same period. The small and mid-size business unit delivered solid results on expanded smartphone demand from key customers and increased sales of IT and automotive products. The large display business unit expanded sales by meeting year-end peak-season market demand.
Samsung Electronics said that in the first quarter of this year, with robust industry conditions expected on strong AI-related memory demand, it plans to respond proactively to market demand with a focus on high value-added products. It also said it will lead the market by shipping mass-produced sixth-generation HBM (HBM4), including an industry-leading 11.7 gigabits per second (Gbps) product.
System LSI will expand sales of system-on-chips (SoCs) based on stable Production yield and strengthen technological leadership by enhancing competitiveness in fine-pixel image sensors. The foundry plans to pursue double-digit or higher sales growth and profit-and-loss improvement centered on advanced processes. In the second half, it aims to mass-produce new products using second-generation 2 nm processes and to optimize the performance and power of 4 nm to continue strengthening technological competitiveness.
In smartphones, it said it will launch the Galaxy S26 to expand sales centered on flagship products and solidify leadership in the AI smartphone market based on agentic AI experiences. VD plans to target replacement demand tied to global sports events and drive sales growth centered on Micro RGB and OLED TVs. Home appliances will expand sales of AI appliances and, based on synergy with the Plaqt Group, expand the heating, ventilation and air conditioning business.
Samsung Electronics' facility investment in the fourth quarter of last year was about 20.4 trillion won, with 19 trillion won for the DS institutional sector and about 700 billion won for displays by institutional sector. Full-year facility investment last year was about 52.7 trillion won, with about 47.5 trillion won for the DS institutional sector and about 2.8 trillion won for displays by institutional sector. The DS institutional sector will focus on transitioning to advanced processes to meet demand for high value-added products and on supplementary investments for existing lines, while displays will invest to supplement existing lines and improve performance.