Samsung Reports Record Profits Amid Severe Memory Supply Crisis

Samsung Electronics reported record second-quarter 2026 results, with an operating profit of 89.5 trillion won ($118.7 billion) and revenue of 171.5 trillion won. This growth was fueled by surging demand for AI memory products in DRAM and NAND flash, though the company's mobile division recorded its first-ever quarterly operating loss due to rising component costs.

Despite record earnings, the company warned of a severe memory supply crisis expected to intensify through 2028. Jaejune Kim, head of sales and marketing for memory, stated that supply limits will be more severe in 2027 than in 2026. To manage this imbalance, Samsung signed long-term supply agreements lasting at least five years with the five largest global data center operators, covering 60% to 70% of its future capacity. This outlook aligns with rival SK Hynix, whose CEO predicted 2027 would be the worst year in industry history for supply.

To offset mobile losses, Samsung is raising consumer prices and preparing new releases for late 2026, including the Galaxy Tab S12, Galaxy S26 FE, and intelligent eyewear. The company is also expanding its manufacturing footprint, with a facility in Taylor, Texas, on track to begin operations this year.