[Edaily Reporter Choi Oh-hyun ] SamsungElectronics set a new record in its corporate history by surpassing 107 trillion won in operating profit for the third quarter of this year. This marks not only the company’s highest-ever quarterly profit but also the first time a South Korean company has exceeded 100 trillion won in quarterly operating profit. The results were driven by a surge in demand for memory semiconductors and rising prices, fueled by expanded investment in artificial intelligence (AI). While the semiconductor business alone generated over 106 trillion won in operating profit, the smartphone and home appliance businesses continued to post losses due to cost pressures.

On the 29th, SamsungElectronics reported third-quarter consolidated revenue of 195.3 trillion won and operating profit of 107.44 trillion won. These figures represent increases of 127% and 783%, respectively, compared to the same period last year. Compared to the previous quarter, revenue rose 14% and operating profit increased 20%. It became the first global technology company to surpass 100 trillion won in quarterly operating profit and set new all-time highs for both revenue and operating profit for the fourth consecutive quarter.

The Device Solutions (DS) division, which oversees the semiconductor business, was the primary driver of these results. The DS division posted revenue of 147.1 trillion won and operating profit of 106.5 trillion won. Its operating profit margin reached approximately 72.4%. Within this division, revenue from the memory business totaled 140.7 trillion won, a 16% increase from the previous quarter. In particular, the company boosted profitability by significantly expanding HBM4 sales in response to increased investment in AI servers and by actively meeting the growing demand for server-grade solid-state drives (SSDs). SamsungElectronics forecasts that the memory supply shortage will worsen next year compared to this year due to expanded investment in AI infrastructure.

The foundry business saw improved performance due to increased sales of HBM base dies and the expansion of sales of advanced processes. Orders from 2-nanometer HPC customers, including major hyperscalers, were also robust. The System LSI business also saw revenue growth driven by the supply of new mobile system-on-chip (SoC) and image sensor products.

In contrast, the Device Experience (DX) division, which handles smartphones and home appliances, posted a loss for the second consecutive quarter. Revenue rose 8% from the previous quarter to 52.1 trillion won, but the division recorded an operating loss of 800 billion won. While rising memory prices benefited the semiconductor business, they increased cost pressures for the smartphone division. The Mobile Experience (MX) and Network businesses posted a loss of 600 billion won, while the TV and home appliance divisions also recorded a loss of 200 billion won. SamsungElectronics plans to defend its profitability by expanding sales of premium products and improving cost efficiency.

Samsung Display posted revenue of 8 trillion won and an operating profit of 1.1 trillion won. Harman recorded revenue of 4.3 trillion won and an operating profit of 600 billion won. Annual capital expenditures totaled 84.4 trillion won, with the Device Solutions (DS) division accounting for 76.8 trillion won and the Display division for 3.9 trillion won.

Based on these record-breaking results, the company will also expand shareholder returns. SamsungElectronics has finalized its third-quarter cash dividend at 30 trillion won. A dividend of 4,601 won per share will be paid on the 27th of next month. Of this year’s total shareholder returns, estimated at 90 trillion to 110 trillion won, 35 trillion won has already been paid or finalized, leaving remaining funds of 55 trillion to 75 trillion won.

The company stated, “We are aware of market concerns regarding the price difference between common and preferred shares,” adding, “When repurchasing and canceling treasury shares, we plan to actively consider and adjust the proportion of preferred shares purchased to reflect market conditions.” Furthermore, the company plans to finalize specific additional shareholder return measures, including treasury share repurchases and cancellations, at a board meeting scheduled for late January of next year.