The titan that once dominated the global semiconductor market has emphatically announced its powerful comeback in the fourth quarter of 2025. Capitalizing on breakthroughs in High Bandwidth Memory (HBM) technology and rising market prices, the world's largest memory chip manufacturer achieved record-breaking quarterly revenue and operating profit, simultaneously wresting back the sales crown for Dynamic Random-Access Memory (DRAM) from its competitor SK Hynix.
On January 29, Samsung Electronics released its latest earnings report, revealing a fourth-quarter 2025 revenue of 93.8 trillion won, a year-on-year increase of 23.8% and a sequential quarterly growth of 9%. Operating profit surged to 20.1 trillion won, a staggering 209.2% jump compared to the same period last year, with both figures setting new all-time highs for a single quarter among South Korean enterprises. For the full year 2025, revenue reached 333.6 trillion won and operating profit was 43.6 trillion won, representing annual growth of 10.87% and 33.3%, respectively.
The earnings report indicated that Samsung's Device Solutions (DS) division, which encompasses semiconductors, contributed a substantial 80% of the group's operating profit. The DS division's Q4 revenue hit 44 trillion won, climbing 33% from the previous quarter, while its operating profit exploded by 465% year-on-year to 16.4 trillion won. The memory business specifically achieved historic highs in both quarterly revenue and operating profit, primarily driven by expanded sales of high-value-added products like HBM and a broad-based increase in market prices.
After temporarily losing its edge due to a strategic misstep, the company reportedly regained its technological competitiveness through a comprehensive overhaul of its HBM design, reclaiming the number one position in DRAM sales (by revenue) in the fourth quarter. Market analysts project that, benefiting from the semiconductor boom and a shortage in memory supply, Samsung's operating profit for the current year could potentially reach 180 trillion won, a 314% increase year-on-year.
Swept up in the AI wave, memory chips have become the absolute core driver of Samsung Electronics' performance growth. Samsung's memory business achieved dual historic records for both quarterly revenue and operating profit in Q4.
Despite facing supply constraints, the business managed this feat by meeting robust demand for conventional DRAM while simultaneously expanding HBM sales against a backdrop of generally rising prices. The strategic focus has shifted towards enhancing profitability by prioritizing high-value-added products such as HBM, server DDR5, and enterprise-grade SSDs.
The company's competitive standing in the HBM arena has undergone a dramatic transformation. According to data from market research firm Counterpoint Research, Samsung held a 38% share of the DRAM market in Q4 2024 but saw this slip to 34% in Q1 2025, being overtaken by SK Hynix (36%).
Samsung, however, did not remain dormant for long. In a bid to reclaim its technological edge, Samsung executed a thorough redesign of its HBM architecture. A key signal from the earnings report reveals that Samsung has successfully commenced shipments of HBM3E to NVIDIA and has entered the supply chains of Google and AMD.
Even more impactful is Samsung's announcement that it has completed development of HBM4, which boasts an industry-leading speed of 11.7 Gbps, with plans to begin full-scale shipments to NVIDIA next month. The delivery of these 12-layer HBM4 products is aimed at re-establishing its leadership in the premium HBM market.
Looking ahead to 2026, the memory business plans to continue close collaboration with customers, aiming to meet their needs through the timely shipment of competitive HBM4 and by expanding sales of other AI-related products like DDR5, SOCAMM2, and GDDR7. In the NAND flash sector, the business will proactively address AI-related demand, focusing on expanding sales of high-performance TLC products such as Key Value SSDs used for AI inference.
Samsung's chip contract manufacturing (foundry) business saw overall revenue growth in Q4 due to strong demand from key customers, though profit improvement was constrained by one-time costs. The business has initiated mass production of its first-generation 2-nanometer process node and has begun shipping 4nm base die products for HBM.
For Q1, foundry revenue is anticipated to decline sequentially due to seasonal weakness, but orders are expected to expand, primarily from High-Performance Computing (HPC) and mobile clients.
For the full year 2026, the foundry business targets double-digit revenue growth and enhanced profitability, driven by advanced process nodes. It plans to ramp up production of its second-generation 2nm products and prepare for a performance- and power-optimized 4nm process. Competitiveness will be bolstered by offering optimized solutions that integrate logic, memory, and advanced packaging technologies.
The System LSI business experienced a decline in profitability in Q4, attributed to seasonal demand softness and adjustments to the product schedules of major customers. However, revenue from image sensors grew, fueled by new 200-megapixel and 50-megapixel large-pixel products.
Profitability in Q1 is forecast to recover alongside new product launches, while the business aims to strengthen its leadership in image sensors by expanding its 200MP product lineup. Throughout 2026, this business will focus on improving profitability by expanding sales through differentiated System-on-Chip (SoC) performance and stable production yields.
In stark contrast to the robust performance of its semiconductor operations, Samsung's consumer-facing businesses encountered significant challenges.
The earnings report showed that the combined revenue for the Mobile and Networks businesses in Q4 was 29.3 trillion won, with an operating profit of just 1.9 trillion won, marking an 8% sequential decrease. This was mainly due to the diminishing effect of new smartphone model releases and intense market competition.
The Home Appliance and TV businesses recorded an operating loss for the second consecutive quarter following Q3. The combined revenue for the Display Panel and Home Appliance businesses in Q4 was 14.8 trillion won, resulting in an operating loss of 0.6 trillion won.
Although the TV business managed to expand revenue through strong sales of premium products like Neo QLED and OLED TVs and effective handling of seasonal peak demand, its profitability remained under pressure due to persistently fierce market competition.
Samsung's research and development investment in Q4 reached 10.9 trillion won, an increase of 2 trillion won from the previous quarter. Full-year R&D expenditure hit a record high of 37.7 trillion won, underscoring the company's continued heavy investment in technological innovation.
Looking ahead to Q1 2026, the mobile business plans to solidify its leadership in AI smartphones by launching the Galaxy S26 series, which will offer advanced Agentic AI experiences. For the full year 2026, the business intends to consolidate its mobile AI leadership by leveraging next-generation AI experiences and innovations in thinner, lighter form factors, while remaining steadfastly committed to profitability through process optimization amid ongoing cost pressures.
The earnings report indicates that Samsung anticipates continued growth in AI and server demand during the first quarter of 2026, presenting further structural growth opportunities. The semiconductor division will continue to prioritize profitability by emphasizing high-performance products.
For the entirety of 2026, the division aims to lead the AI era with its product competitiveness within a rapidly expanding demand environment, specifically by increasing sales of AI-related products within both DRAM and NAND.
Technology industry insiders noted that Samsung's semiconductor business has begun to re-accelerate following a period of slowdown. The current global memory supply shortage is expected to directly benefit Samsung, given its substantial production capacity.
SK Securities forecasts that Samsung's operating profit this year will surge 314% year-on-year to 180 trillion won, with an operating profit margin of 37%, setting new historic highs in both absolute profit and profitability.
The Device eXperience (DX) division plans for 2026 to expand its portfolio of AI-driven products and integrate AI technology across its entire ecosystem of devices, features, and services.
The division will maintain its focus on profitable growth by ensuring stability in component supplies, implementing efficiency measures, and delivering superior AI experiences to customers as a leader in the AI era.
The display panel business will advance its leadership in the smartphone market based on differentiated technology, continue its premium market leadership in TVs by focusing on new high-brightness products, and aim to drive sales expansion in the monitor segment by leveraging differentiated performance advantages.
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