Samsung’s semiconductor division will earn in 2026 more than the previous 40 years combined

The president and head of corporate strategy for the Device Solutions (DS) division of Samsung Electronics, Kim Yong-kwan, has recently shared financial projections outlining an unprecedented year of profits for the South Korean giant.

During a company meeting held on July 3, the executive confirmed that the division’s operating profit for the year to date will meet market consensus estimates. Analysts expect an annual operating profit of around 300 trillion won, equivalent to about €184 billion.

The most impressive figure revealed during the meeting relates to the historical comparison: the profits generated in 2026 will surpass the entire cumulative profit earned by the company in the 40 years since its first entry into the semiconductor sector.

Samsung DS earnings in 2026 exceed the previous 40 years combined

As the publication of preliminary financial results for the second quarter of 2026 is awaited, estimates point to an operating profit of 84.5994 trillion won, equivalent to about €50.7 billion for the single period.

If these figures are confirmed by official documents, Samsung would surpass NVIDIA’s operating profit in the first quarter, which stood at €49.2 billion, officially establishing itself as the world’s most profitable company.

This formidable growth is tightly linked to the strong pricing dynamics imposed in the memory segment, sustained by an insistent demand for hardware for data processing.

Samsung is currently engaged in tight negotiations with DRAM customers, aiming to push a further price increase up to 20% on a quarterly basis during the third quarter.

This strategy follows highly aggressive price increases implemented in recent months: a 90% rise in the first quarter of 2026 versus the list prices of Q4 2025, followed by a further jump between 50% and 60% in the second quarter.

Specifically analyzing the 12GB LPDDR5X modules, contract prices hovered around €110 between the end of the first quarter and the start of the second. These components have recorded an increase of about €63 since the start of the year, recently reaching a price of €133 per unit, consolidating a growth of three times higher than the lows of the previous year.

Production strategies and long-term investments

To meet demand, Samsung and SK hynix are pursuing a massive investment plan worth about €736 billion, aimed at expanding the memory chip production capacity.

The technical complexities involved in the construction and ramp-up of new foundries indicate, however, that the new facilities will not be able to guarantee meaningful production volumes before 2033.

This time window confirms that the high costs of DRAM and NAND memories will remain high for a long time, driven by the insatiable demand for components to train and run artificial neural networks.