Samsung Electronics reported a record fourth‑quarter revenue of ₩93.8 trillion and an operating profit of ₩20.1 trillion, the highest in its 55‑year history. The surge was powered by the Device Solutions division, especially a sharp rise in high‑bandwidth memory (HBM) sales, which lifted both revenue and margins amid a broader memory price recovery globally.
Record Q4 Financial Highlights
- Consolidated revenue: ₩93.8 trillion
- Operating profit: ₩20.1 trillion
- Device Solutions (DS) revenue: ₩44 trillion
- DS operating profit: ₩16.4 trillion
- Year‑over‑year DS growth: Revenue +46.2 %, Operating profit +465 %
Key Drivers Behind the Surge
High‑Bandwidth Memory (HBM) Growth
HBM products command premium pricing due to superior bandwidth and low latency, meeting the rising demand from AI accelerators, high‑performance computing clusters, and next‑generation graphics solutions. Samsung’s expanded HBM shipments and higher memory prices drove a significant uplift in both revenue and profit margins.
Memory Market Price Recovery
While the broader DRAM and NAND markets faced cyclical pressure, a price recovery that began in late 2024 boosted Samsung’s earnings. The company captured a larger share of the premium‑price segment, offsetting volume fluctuations in lower‑margin products.
Foundry Momentum and 2‑nm Production
Samsung’s foundry business is on a double‑digit revenue growth trajectory for 2025. Mass production of the second‑generation 2‑nm (2nm‑2) process is slated for the second half of 2025, strengthening its competitive position against rivals in the advanced‑node market.
Industry Implications
- AI‑centric demand: Samsung’s HBM success highlights the growing importance of AI‑optimized memory, prompting competitors to accelerate their own HBM roadmaps.
- Foundry competition: The upcoming 2nm‑2 node places Samsung in direct contention with leading foundries, potentially reshaping the advanced‑node ecosystem.
- Capital allocation: A ₩20 trillion investment in 2025 facilities, heavily weighted toward semiconductor fabs, signals confidence in long‑term demand.
- Investor sentiment: Transparent IR communications and public conference calls enhance Samsung’s appeal to institutional investors seeking semiconductor exposure.
Future Outlook
Management expects the second half of 2025 to be pivotal for converting the 2nm‑2 node into revenue growth while maintaining steady demand for HBM as AI workloads mature. By focusing on high‑margin, high‑value products, Samsung aims to protect profitability despite macro‑economic uncertainties, positioning itself as a bellwether for the semiconductor industry’s next growth phase.
