Samsung revenue jumps 43% due to AI chip demand

Samsung Electronics has reported a sharp 43 per cent increase in first-quarter revenue, reaching ₩133.9 trillion, its highest quarterly performance on record, even as some business units struggled with weak demand and rising costs.

The company also posted a record operating profit of ₩57.2 trillion for the quarter ended March 31, 2026, highlighting strong earnings momentum driven largely by its semiconductor division.

Despite the headline growth, Samsung said several of its business segments faced pressure during the period. Its display unit recorded weaker earnings, particularly in the small- and medium-sized display segment, due to seasonal declines in smartphone demand and higher memory prices. The company warned that uncertainty could persist in the display market through the second half of the year.

Its telecommunications networks business also reported a decline in earnings, both quarter-on-quarter and year-on-year, citing reduced global investment in telecom infrastructure. Similarly, the digital appliances segment saw only modest improvement, weighed down by rising tariffs and ongoing cost pressures.

Samsung’s Harman subsidiary, which focuses on connected technologies and audio systems, also posted lower earnings, reflecting seasonal demand weakness and supply-related cost increases.

However, the company’s semiconductor arm remained a standout performer. The Device Solutions division generated ₩81.7 trillion in revenue and ₩53.7 trillion in operating profit, driven by surging demand for artificial intelligence-related memory products.

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Samsung said its memory business achieved record sales, supported by advanced products such as HBM4 chips and PCIe Gen6 solid-state drives, which are increasingly used in AI and data centre applications. The company also confirmed it had begun mass sales of next-generation memory products for platforms developed by NVIDIA.

Looking ahead, Samsung expects demand for server memory to remain strong as businesses expand investments in artificial intelligence and large language models. The company also reported improved performance in its mobile division, supported by strong sales of premium smartphones.

Samsung said it will continue to focus on AI-driven innovation, high-end products, and operational efficiency to sustain growth amid global market uncertainties.