Samsung's Chip Division Soars with 80% Profit Surge in Q3 2025

Samsung Electronics reported a massive rebound in its third-quarter 2025 earnings, with operating profit reaching 12.2 trillion won ($8.5 billion), a 33% increase year-over-year and a 160% surge from the previous quarter. Revenue hit 86.1 trillion won, beating analyst forecasts.

The semiconductor division was the key driver, posting an 80% profit jump to 7 trillion won in operating profit, far exceeding expectations of 4.7 trillion won. This marked a record-high quarterly revenue for the memory chip business, fueled by strong sales of HBM3E chips for AI applications, with the division's operating profit margin leaping to 21.1% from 1.4% in Q2.

Samsung plans to ramp up mass production of next-generation HBM4 memory chips in 2026 and has allocated 47.4 trillion won ($33 billion) for capital spending in 2025 to expand manufacturing capacity. The company attributed the recovery to sustained AI demand from companies like Nvidia, OpenAI, and Meta, with memory chip prices for DRAM and NAND expected to remain elevated for several quarters.

Following the earnings announcement, Samsung's shares rose as much as 5% in early trading, reflecting investor confidence. The company also reclaimed the top spot in the memory market in Q3, outperforming rivals like SK Hynix after trailing in the previous quarter.