Samsung Electronics Restores HBM Technology... Semiconductor Operating Profit Hits 7 Trillion Won in Q3

Full-Scale Supply of HBM3E to Nvidia Signals Samsung's Recovery of Semiconductor Credibility

Samsung Electronics has begun mass production of high-bandwidth memory (HBM3E), which had previously faced concerns over production stability, and has started supplying it to major global clients such as Nvidia. This move is seen as restoring both technological reliability and profitability, thereby removing uncertainty in the competitive landscape of the memory market.

On October 30, Samsung Electronics announced that its consolidated revenue for the third quarter reached 86.1 trillion won, with operating profit at 12.2 trillion won. Revenue increased by 8.7% and operating profit by 31.8% compared to the same period last year, marking the highest quarterly revenue in the company’s history.

The Device Solutions (DS) division, which oversees semiconductors, achieved revenue of 33.1 trillion won and operating profit of 7 trillion won, driven by expanded sales of HBM3E and server SSDs. Revenue rose by 19% compared to the previous quarter. Samsung Electronics stated, "We are mass-producing and supplying HBM3E to all clients, and have completed shipments of HBM4 samples to customers who requested them."

The Device eXperience (DX) division recorded revenue of 48.4 trillion won and operating profit of 3.5 trillion won, thanks to strong sales of new foldable phones such as the Galaxy Z Fold7 and flagship models. Revenue increased by 11% quarter-on-quarter. Expanded sales of new tablets and wearables also helped maintain double-digit profitability. However, some results declined due to weakened TV demand and the impact of U.S. tariffs on the home appliance segment.

The display division posted revenue of 8.1 trillion won and operating profit of 1.2 trillion won. Performance improved thanks to increased sales of small- and mid-sized OLEDs for flagship smartphones and expanded QD-OLED monitor sales. Harman reported revenue of 4 trillion won and operating profit of 400 billion won.

Samsung Electronics invested a cumulative total of 26.9 trillion won in research and development (R&D) through the third quarter. While the strong Korean won had some impact on the DS division, the currency effect was offset in the DX division, resulting in little change to overall profit.

Regarding its outlook for the fourth quarter, Samsung Electronics stated, "With the growth of the AI industry, both the DS and DX divisions are facing new market opportunities," adding, "We will expand sales centered on high-value memory, AI smartphones, and AI home appliances." The DS division plans to strengthen sales of server products such as HBM3E, high-capacity DDR5, and high-performance SSDs, and to begin full-scale mass production of the 2-nanometer process in foundry. The DX division will focus on expanding sales of premium products, including the Galaxy S25 series and foldable phones.

Samsung Electronics also forecast that the favorable semiconductor market, driven by increased investment in artificial intelligence (AI), will continue next year. The company plans to increase the share of high-value memory products such as HBM4, DDR5, and GDDR7, and to begin full-scale operations at its Taylor, Texas plant starting in 2026.