Samsung's memory chip unit sales see record high in Q3 amid AI demand

[Samsung Electronics America Corporate office in Ridgefield Park, NJ, USA.]
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Samsung Electronics (OTCPK:SSNLF [https://seekingalpha.com/symbol/SSNLF]) said its Memory business achieved record-high quarterly revenue amid strong AI demand and noted that going forward in 2026, the unit will focus on the mass production of its most advanced chips, HBM4 products.

Third quarter revenue jumped [https://news.samsung.com/global/samsung-electronics-announces-third-quarter-2025-results] about 9% year-over-year to KRW 86.1T, while operating profit increased 3% year-over-year to KRW 12.2T.

Samsung said [https://images.samsung.com/is/content/samsung/assets/global/ir/docs/2025_3Q_conference_eng.pdf] the Device Solutions, or DS, Division reported a 19% increase in sales quarter-on-quarter, with the Memory Business setting an all-time high for quarterly sales, driven by strong growth of HBM3E and server SSDs.

Meanwhile, the Device eXperience, or DX, Division posted a revenue increase of 11% quarter-over-quarter due to the successful launch of new foldable phones and solid flagship sales, according to the company.

OUTLOOK

Samsung noted that looking ahead to the fourth quarter, the rapid growth of the AI industry is expected to open up new market opportunities for both the DS and DX Divisions.

The DS Division plans to focus on enhancing its performance by increasing sales of high-value-added memory products tailored to AI. The semiconductor market is expected to remain strong, driven by ongoing AI investment momentum, the company added.

MEMORY BUSINESS

The DS unit, which includes the Memory business, saw revenues grow 13% year-over-year to KRW 33.1T and 19% quarter over quarter.

The unit reported an operating profit of KRW 7T for the September quarter, compared with analysts’ average estimate of KRW 4.7T, Bloomberg News reported [https://www.bloomberg.com/news/articles/2025-10-30/samsung-s-chip-profit-soars-after-ai-fuels-demand-for-memory?srnd=phx-technology].

Samsung noted that in the third quarter of 2025, the Memory Business achieved record-high quarterly revenue by expanding HBM3E sales while addressing strong demand across all applications.

The company added that HBM3E is currently in mass production and being sold to all related customers, while HBM4 samples are simultaneously being shipped to key clients.

South Korean company Samsung produces High-Bandwidth Memory, or HBM, chips. Compatriot SK hynix (OTCPK:HXSCF [https://seekingalpha.com/symbol/HXSCF]) is a major supplier of HBM chips to Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]). American company Micron Technology (MU [https://seekingalpha.com/symbol/MU]) is also a rival to the two companies in the HBM market.

MEMORY BUSINESS OUTLOOK: Samsung said that in the fourth quarter of 2025, the business will actively respond to demand from AI and conventional servers with HBM3E, high-density eSSDs and other leading-edge memory offerings.

Going forward in 2026, the Memory Business will focus on the mass production of HBM4 products with differentiated performance, while aiming to scale out the HBM sales base, the company added.

The tech giant noted that demand for HBM4 is also projected to increase, and it plans to respond with capacity expansion in 1c.

SYSTEM LSI BUSINESS

Samsung said earnings for the System LSI Business stalled due to seasonality and customer inventory adjustments, despite a stable supply of premium systems-on-chip (SoCs).

OUTLOOK: The company said that in the fourth quarter, the business will aim to expand sales of premium SoCs and image sensors amid continued weak demand from major customers. In 2026, the System LSI Business plans to strengthen the competitiveness of the Exynos processor for key flagship models and use differentiated image sensor technologies to broaden market presence.

FOUNDRY BUSINESS

Samsung said that the Foundry Business posted a significant improvement in earnings in the third quarter, driven by a reduction in one-off costs and better fab utilization. The Business also achieved record-high customer orders, mainly on advanced nodes.

OUTLOOK: The company noted that in the fourth quarter, the unit will aim for continued earnings improvement by ramping up mass production of 2nm Gate-All-Around, or GAA, products, increasing fab utilization, and optimizing costs.

In 2026, the Foundry Business will focus on providing a stable supply of new 2nm GAA products and the HBM4 base-die, and beginning operations at the company’s fab in Taylor, Texas, in a timely manner.

DIGITAL EXPERIENCE

Sales from the DX segment rose 8% year-over-year to KRW 48.4T. The Mobile eXperience, or MX, and Networks businesses posted KRW 34.1T in revenue and KRW 3.6T in operating profit for the third quarter.

The company said that in the third quarter, the MX Business experienced quarter-over-quarter and year-over-year growth in sales and operating profit due to robust flagship smartphone sales, as well as the strong launch of Galaxy Z Fold7 and improved sales of tablets and wearables.

OUTLOOK: In Q4 2025, the unit plans to use seasonal promotions of AI smartphones such as Galaxy S25 and foldables — and ecosystem devices centered on new premium models — to achieve year-over-year growth.

Samsung noted that in 2026, MX will strengthen its AI leadership with form factor innovations and expand AI smartphone sales to drive growth across all segments and strengthen its market share in terms of volume.

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