Samsung Electronics Co., Ltd. reported first-quarter earnings on Thursday, revealing that operating profit from its chip division surged nearly 50 times year-on-year, reaching a historic high. However, the company also cautioned that due to AI-driven memory demand far outstripping supply capacity, the supply-demand gap is expected to widen further by 2027.
According to the earnings report, the Device Solutions Division, which oversees semiconductors, recorded first-quarter sales of 81.7 trillion won and an operating profit of 53.7 trillion won—an increase of approximately 48 times compared to the same period last year. This division accounted for 94% of the company’s total operating profit. Memory business sales reached 74.8 trillion won, up 292% year-on-year. Samsung’s total revenue for the quarter stood at 133.9 trillion won, a 69% increase, while total operating profit reached 57.2 trillion won, rising 756% compared to the previous year.
During the earnings call, an executive from Samsung’s memory business stated, "Our supply falls far short of customer demand." Customers have already placed advance orders for 2027 requirements, and "just based on the 2027 demand we have received so far, the supply-demand gap is expected to widen further compared to this year."
In response, Samsung is accelerating its deployment of next-generation technologies. The company has begun mass production of HBM4 memory for NVIDIA’s Vera Rubin platform and has started volume shipments of the new low-power memory module SOCAMM2. It also plans to deliver HBM4E samples in the second quarter. Additionally, Samsung revealed that several hyperscale customers are seeking to enter into more binding multi-year supply agreements.
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