Orders for sophisticated memory microchips have skyrocketed due to a global frenzy to construct AI data centers and enhance the rapidly developing technology. Additionally, this is driving up the cost of less eye-catching chips used in consumer electronics, which might result in increased costs for phones, laptops, and other gadgets throughout the globe.
Samsung reported its highest-ever quarterly consolidated revenue at KRW 93.8 trillion (US$65.5 billion) in the quarter ending in December 2025, a nine percent rise from the previous quarter. At KRW 20.1 trillion, operating profit was also at an all-time high, according to the corporation.
The spectacular results were released the day after SK Hynix, a major rival and South Korean chip manufacturer, said that operating profit had increased to a record high last year thanks to the AI surge.
With Samsung and SK Hynix among the top manufacturers of high-performance memory, the South Korean government has promised to rank among the top three AI powers, behind the US and China.
Samsung predicted AI and server demand to continue increasing, leading to more opportunities for structural growth on Thursday. Operating profit was 43.6 trillion won, while annual revenue was 333.6 trillion won. The division in charge of its semiconductor operations saw a 33 percent increase in sales over the previous quarter.
The business promised to keep investing in transitioning to advanced manufacturing processes and upgrading existing production lines to meet rising demand and cited a $33.2 billion investment in chip manufacturing facilities.
Chipmakers concentrating on AI sales would result in higher retail pricing for consumer goods overall, according to industry analysts and major electronics manufacturers. The US semiconductor manufacturer Micron announced this week that it was constructing a $24 billion facility in Singapore in response to the global memory component shortfall brought on by AI-driven demand.
K Hynix revealed on Wednesday that its operational profit has risen to a record 47.2 trillion won in the previous year. As part of a massive global tech boom driven by excitement over AI, the company’s shares have increased by around 220 percent over the last six months, while Samsung Electronics has increased by approximately 130 percent.
Samsung is expected to begin manufacturing next-generation high-bandwidth “HBM4” chips for AI data centers in February, and both businesses are on the verge of doing so. One of Samsung’s clients for HBM4 chips is anticipated to be the American chip behemoth Nvidia, which is currently the most valuable corporation in the world.
However, according to reports, Nvidia has given SK Hynix over 70% of its HBM4 need for 2026, up from the market’s prior estimate of 50%.
According to Hwang Min-seong, research director at market analysis firm Counterpoint, “Samsung is clearly back and we are expecting them to show a significant turnaround with HBM4 for Nvidia’s new products – helping them move past last year’s quality issues,” he told AFP.
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However, he stated that SK still “maintains a market lead in both quality and supply” of certain essential parts, such as the Dynamic Random Access Memory chips used in AI servers. Additionally, SK announced this week that it will establish a $10 billion “AI solutions firm” in the US and consider investing in US businesses.
