Seoul [South Korea], October 5 (ANI): Samsung Electronics is set for a record 100 trillion won (~USD 73.4 billion) quarterly profit on a memory boom, according to a news report by The Korea Herald. The South Korean tech giant is poised to cross the milestone in operating profit for the July-September period, driven by surging sales of memory semiconductors.

As per the news report, the company is expected to report a third-quarter operating profit of 108.1 trillion won (~USD 80.2 billion). The figure marks an almost ninefold jump compared to the corresponding period of the previous year. Revenue is projected to touch 201.7 trillion won (~USD 148.0 billion), representing a year-on-year climb of 134.4 per cent. The company is scheduled to release its preliminary earnings guidance on Thursday.

The projected profit eclipses the record established in the preceding three-month period, when the firm posted sales of 171.5 trillion won (~USD 125.9 billion) and an operating profit of 89.4 trillion won (~USD 65.6 billion). 

The third-quarter operating profit figure also stands at roughly double the company's full-year total for 2025. An operating profit topping 100 trillion won (~USD 73.4 billion) places the manufacturer alongside the highest quarterly totals recorded internationally. Saudi Aramco posted an operating profit of USD 86.5 billion in the second quarter of 2022, while Nvidia reported revenue of USD 63.7 billion for its fiscal second quarter.

Growth across the memory semiconductor segment continues to propel the quarterly balance sheet. Demand for conventional DRAM, including DDR5, and NAND solutions such as enterprise solid-state drives forms the foundation of this expansion, while deliveries of high-bandwidth memory continue to increase at a rapid pace.

As per the news report, Samsung's presence in the global HBM market advanced to 33 per cent during the second quarter from 21 per cent logged in the first quarter, representing a rise of 12 percentage points. Market analysts project this volume to expand further, as sixth-generation HBM4 chips are slated for inclusion in Nvidia's Vera Rubin artificial intelligence accelerator during the second half of this year.

The news report noted that the Device Solutions division, which directs the company's semiconductor operations, is on track to record an operating margin between 72 per cent and 75 per cent for the third quarter. Projections show that the DRAM unit, which incorporates both high-bandwidth memory and standard memory lines, could see its operational margin top 80 per cent.

In contrast, operations across the contract manufacturing and System LSI units, which handle non-memory integrated circuit design, remain under pressure. Both sectors are projected to remain in negative territory for the third quarter. The contract manufacturing division continues to sign significant client agreements with global technology corporations, though analysts expect these contracts to yield revenue gradually. 

Han Jin-man, president and head of the foundry business, stated that 2028 serves as the operational timeframe for returning the unit to profitability.

The Device Experience division, which manages consumer electronics and mobile equipment, also faces financial head winds. Following an operating loss of 800 billion won (~USD 587 million) in the second quarter, the consumer unit is projected to log an expanded deficit as product demand plateaus and input expenditures, including raw materials, climb. (ANI)