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Seoul, July 31, 2026 – Samsung Electronics has issued a stark forecast that the global shortage of artificial intelligence semiconductors will deepen in 2027 and persist through 2028, even as the company celebrates record breaking earnings from its chip division.
The warning underscores both the extraordinary demand for AI infrastructure and the fragility of global supply chains.
In its latest quarterly results, Samsung reported semiconductor operating profit of ₩89.2 trillion (US$61.7 billion) for Q2 2026, a dramatic surge from ₩4.68 trillion in the same period last year.
Overall revenue climbed 130% year-on-year to ₩171.5 trillion, powered by demand for its advanced HBM4 memory chips, which are essential for training and running large-scale AI models.
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To secure its position in the booming AI market, Samsung has signed five year supply contracts with the world’s five largest data center operators.
These agreements will lock in 60–70% of its production capacity, ensuring a steady flow of chips to hyperscale clients while guaranteeing long-term revenue streams.
The deals reflect confidence that AI spending will remain strong despite concerns about overheating in the sector.
Samsung’s shares initially rose 8% on the earnings announcement before retreating, a sign of investor caution about whether the AI investment frenzy can sustain such extraordinary growth.
Analysts point out that while the chip division is thriving, other parts of Samsung’s business are struggling.
Its mobile division posted a ₩700 billion loss, squeezed by rising memory prices that have made smartphones more expensive to produce.
Expansion remains central to Samsung’s strategy. Its new fabrication plant in Taylor, Texas is scheduled to begin operations later this year, with a second facility already planned for 2030.
The company also expects its foundry business to rebound as factory utilization improves and chip prices stabilize.
Chief Financial Officer Park Soon cheol emphasized that Samsung has no plans to issue American Depositary Receipts (ADRs), citing strong internal cash flow to fund growth.
Yet risks remain. The extended shortage could leave smaller technology firms unable to secure chips, widening the gap between industry giants and mid tier players.
Samsung’s aggressive supply strategy also intensifies competition with SK Hynix, which currently leads in the AI memory market.
Samsung aims to triple its HBM4 revenue in the third quarter, a move designed to close that gap.
The broader question is whether the AI infrastructure boom can sustain record-level investment without tipping into overcapacity.
For now, Samsung’s numbers suggest demand is real and growing.
But with profits soaring in one division and losses mounting in another, the company’s future will hinge on balancing the extraordinary promise of AI with the practical challenges of global supply chains.
