Samsung Reports Record Fourth-Quarter Profit on Strong AI-Driven Chip Demand

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SEOUL, South Korea — Samsung Electronics posted record operating profit and revenue in the fourth quarter of 2025, driven by strong sales of premium semiconductor products, including high-bandwidth memory, as global demand for artificial intelligence technologies continued to surge.

In a regulatory filing released Thursday, the South Korean technology giant said operating profit for the October–December period jumped to 20.07 trillion won ($13.9 billion), up from 6.49 trillion won a year earlier. Quarterly revenue rose 23.8 percent year over year to 93.83 trillion won.

Net profit climbed to 19.64 trillion won, representing a 153.3 percent increase from the same period in 2024. The results exceeded market expectations, with analysts surveyed by Yonhap Infomax projecting net profit of about 18.6 trillion won.

Samsung’s device solutions division, which houses its semiconductor operations, recorded a quarterly operating profit of 16.4 trillion won, up sharply from 2.9 trillion won a year earlier. The company attributed the performance to strong sales of general DRAM and high-bandwidth memory products, supported by rising global memory prices and robust demand for premium offerings such as enterprise solid-state drives.

The device experience division, which includes mobile and television businesses, reported combined operating profit of 1.3 trillion won. Within the segment, the mobile business generated operating profit of 1.9 trillion won, down from 2.1 trillion won a year earlier. The home appliances business posted an operating loss of 600 billion won, compared with an operating profit of 200 billion won in the same quarter last year, which Samsung said was largely due to global tariff-related pressures.

During the fourth quarter, Samsung spent 10.9 trillion won on research and development, bringing full-year R&D spending to a record 37.7 trillion won as the company sought to secure future growth engines. Capital expenditure for the quarter totaled 20.4 trillion won, while full-year facility investment reached 52.7 trillion won, with the device solutions division accounting for 47.5 trillion won.

For all of 2025, Samsung Electronics reported net income of 45.2 trillion won, up 31.2 percent from the previous year. Annual operating profit rose 33.2 percent to 43.6 trillion won, while revenue increased 10.9 percent to 333.6 trillion won.

Despite the strong results, Samsung’s annual operating profit across its entire business portfolio trailed that of chip rival SK hynix Inc., which posted 47.2 trillion won, marking the first time Samsung has fallen behind its competitor on that measure.

Looking ahead, Samsung said it expects growth to continue, led by its semiconductor business amid rising demand from the AI and server sectors. The company said it plans to proactively respond to strong demand for premium memory chips used in AI solutions.

In its mobile business, Samsung said it aims to strengthen its leadership in smartphones through AI-driven features, alongside the launch of its new Galaxy S26 models, which are set to be unveiled next month. The company also said it will work to boost home appliance sales by applying AI technologies and emphasizing premium product lines.

Samsung announced it will pay special dividends totaling 1.3 trillion won, bringing total fourth-quarter shareholder payouts to 3.7 trillion won. Total dividends for fiscal year 2025 amounted to 11.1 trillion won. (Source: IANS)