Source: TrendyNews Korea

Samsung Electronics Achieves 74.6 Trillion Won Q2 Revenue, Expands HBM3e Market Share to 80%

Samsung Electronics announced second-quarter 2025 consolidated revenues of 74.6 trillion won ($55.2 billion) and operating profits of 4.7 trillion won ($3.5 billion). While revenue increased 0.7% year-over-year, operating profit declined significantly by 55.2%. The company's strategic focus on next-generation memory has yielded notable results, with HBM3e products now comprising 80% of total HBM volume, demonstrating Samsung's competitive strength in the advanced memory market.

For American readers, Samsung's quarterly revenue of $55.2 billion is comparable to major U.S. technology companies like Intel ($15.9 billion quarterly) or Qualcomm ($9.4 billion quarterly), highlighting Samsung's massive scale in the global semiconductor industry. The company's HBM (High Bandwidth Memory) technology is crucial for AI applications, competing directly with U.S. memory companies and serving major American tech giants like NVIDIA and Google.

DS Division Growth Momentum, But Profitability Challenges Persist

The DS (Device Solutions) division reported revenues of 27.9 trillion won ($20.7 billion) and operating profits of 400 billion won ($296 million). Quarterly revenue increased 11% from the previous quarter, but operating profit decreased by 0.8 trillion won due to inventory asset valuation losses in the memory business and inventory losses from China sanctions affecting the non-memory business.

However, expanded sales of high-value server memory products and increased foundry revenues from major customers drove growth. Notably, HBM sales volume increased approximately 30% quarter-over-quarter on a bit basis, with HBM3e products comprising about 80% of this volume, representing a significant strategic achievement for Samsung's advanced memory portfolio.

This growth in high-performance memory is particularly significant given the AI boom in the United States, where companies like OpenAI, Microsoft, and Meta are rapidly expanding their data center capabilities. Samsung's HBM3e technology directly supports these American AI initiatives, making the company a critical supplier in the global AI infrastructure race.

HBM3e Market Leadership Acceleration

Samsung Electronics is pursuing an aggressive strategy to secure market leadership in HBM3e products. The company expects HBM3e sales proportion to exceed 90% in the second half of 2025, driven by completed phased mass production approvals from customers and continuously secured demand. This positions Samsung ahead of competitors like SK Hynix and Micron Technology in the crucial AI memory market.

To respond to surging AI data center demand, Samsung is actively addressing server requirements by expanding sales proportions of HBM3e and high-capacity DDR5 products. Data center SSD sales are also increasing simultaneously, strengthening the company's position in the AI infrastructure market that heavily serves American technology companies and cloud service providers.

However, HBM3e product supply increases are expected to exceed demand growth, creating anticipated supply-demand changes that will impact market pricing in the near term. The profitability gap between HBM3e and general DRAM is also expected to narrow rapidly, reflecting market maturation and increased competition from other memory manufacturers.

DX Division Faces New Product Launch Effect Decline

The DX (Device eXperience) division recorded revenues of 43.6 trillion won ($32.3 billion) and operating profits of 3.3 trillion won ($2.4 billion). Quarterly revenue decreased 16% while operating profit declined by 1.4 trillion won, primarily attributed to weakening smartphone new product launch effects and intensified TV market competition.

While Galaxy S25 series initial sales response was favorable, overall smartphone market growth slowdown and aggressive marketing from Chinese brands affected market share. The TV division also faced profitability pressure from decreased demand due to global economic slowdown and price competition with Chinese manufacturers.

For American consumers, this reflects broader challenges in the premium smartphone market, where Samsung competes directly with Apple's iPhone. The company's struggles mirror those faced by other premium brands as consumers become more price-conscious and upgrade cycles lengthen globally.

Foundry Business Customer Diversification Success

The foundry business showed notable revenue increases from major customers. Particularly responding to increasing demand for AI chips and high-performance computing (HPC), Samsung is concentrating on producing high-value products based on advanced process technologies. This directly competes with Taiwan Semiconductor Manufacturing Company (TSMC) in serving American chip design companies.

Samsung Electronics is accelerating 2-nanometer process development alongside stabilizing 3-nanometer process mass production. Through expanded partnerships with major global fabless companies, including many U.S.-based chip designers, Samsung is strengthening its competitiveness in the foundry market. This includes potential partnerships with companies like Qualcomm, Broadcom, and emerging AI chip startups in Silicon Valley.

Second Half Outlook and Challenge Assessment

Samsung Electronics aims to significantly increase HBM3e sales volume in the second half compared to the first half, targeting business normalization. The company expects continued AI infrastructure investment expansion and data center demand growth to drive full-scale recovery in the memory semiconductor market, particularly benefiting from ongoing American technology company expansion.

However, several challenges remain. China's semiconductor sanctions continue to impact operations, and global economic uncertainty creates concerns about IT demand volatility. Particularly, memory market oversupply concerns and price decline pressures require careful monitoring regarding their impact on profitability, especially as new competitors enter the HBM market.

AI Era Response Strategy Enhancement

Samsung Electronics is focusing on strengthening its product portfolio for the AI era. Beyond HBM3e, the company is accelerating next-generation HBM4 development and expanding investments in AI semiconductor-optimized packaging technologies and storage solutions. These developments directly support American AI companies' infrastructure needs and autonomous vehicle development programs.

Additionally, Samsung plans to introduce AI design automation systems to strengthen semiconductor design capabilities and continue expanding R&D investments in next-generation process technology development. This strategy aims to maintain technology leadership in the global semiconductor market while competing with American companies like NVIDIA and Intel in AI chip technologies.

The company is also investing heavily in quantum computing research and neuromorphic chip development, areas where it competes with IBM, Google, and Intel. These future technologies could revolutionize computing and maintain Samsung's position as a global technology leader serving both consumer and enterprise markets in the United States and worldwide.

While second-quarter results showed significantly decreased operating profit year-over-year, positive signals are emerging including HBM3e market share expansion and increasing AI-related demand. The market recovery momentum in the second half, combined with Samsung's technological competitiveness, will be closely watched as the company navigates the evolving global semiconductor landscape and strengthens its position in the American technology ecosystem.

Source: TrendyNews Korea

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Original Korean Article: 삼성전자 2분기 매출 74.6조원 달성, HBM3e 점유율 80% 확대