Samsung’s semiconductor business has ended four consecutive quarters of declining profit with a turnaround built around the component AI accelerators cannot scale without: high-bandwidth memory. In the third quarter of 2025, the group reported operating profit of KRW 12.2 trillion, or approximately $8.6 billion, more than double the previous quarter.
The Device Solutions division generated KRW 33.1 trillion in revenue and KRW 7 trillion in operating profit. That profit was more than ten times the June-quarter result, while the Memory Business achieved record quarterly revenue.
Improved market pricing helped, but Samsung’s recovery also reflects progress in HBM products after delays allowed SK Hynix to take an early lead. The quarter therefore combines a cyclical rebound with product execution that Samsung urgently needed to restore.
HBM3E Turned AI Demand Into Revenue
Samsung says HBM3E is now in mass production and being sold to all relevant customers, while HBM4 samples are shipping to key clients. Reports in September indicated the company had passed NVIDIA qualification tests for advanced HBM, although Samsung did not publicly confirm that specific milestone.
The timing aligns with faster HBM sales in the quarter. Data-centre companies continue investing heavily as they compete for AI infrastructure, and Samsung says server demand significantly exceeds industry supply. That imbalance has restored pricing power after the earlier memory glut.
Server solid-state drives also contributed. Together with HBM, they show how AI investment spreads beyond processors into the memory and storage required to keep accelerators supplied with information. A powerful GPU cluster cannot achieve its promised throughput if memory bandwidth and data delivery fall behind.
The Comeback Followed a Difficult Competitive Reset
During 2024 and early 2025, falling memory prices, delayed HBM customer approvals, and SK Hynix’s lead raised doubts about Samsung’s technical position. SK Hynix briefly became the largest memory supplier, supported by its role in NVIDIA accelerators.
Counterpoint Research director MS Hwang attributes part of Samsung’s recovery to a broader memory-market boom and rising general-purpose prices. Yet Samsung also reclaimed the top memory position during Q3, suggesting the result was not solely a favourable market tide.
Lower inventory-value adjustments and other reduced one-off expenses strengthened earnings. The distinction matters because some gains may not repeat, while HBM qualification and expanded customer shipments can support a longer product cycle. Investors will need to separate sustainable volume and pricing from the absence of charges that weakened earlier quarters.
Foundry Progress Adds a Second Recovery Path
Samsung’s contract-manufacturing business improved as one-off costs fell and fabrication plants were used more efficiently. It reported record customer orders focused on advanced process nodes and is increasing production of two-nanometre Gate-All-Around products in competition with TSMC.
The Taylor, Texas fabrication plant is scheduled to begin operating in 2026. Meanwhile, System LSI, which designs Exynos processors and image sensors, remained weak because of seasonal demand and customer inventory changes. The contrast shows that recovery is uneven across Samsung’s semiconductor portfolio.
Samsung plans to expand its 1c manufacturing process and move HBM4 into mass production. Sustaining the recovery will require execution against SK Hynix in memory and TSMC in foundry while navigating geopolitical pressure across the chip supply chain.
Group revenue reached KRW 86.1 trillion, up 15.4 percent quarter over quarter and 8.85 percent annually. Smartphones also contributed through the Galaxy Z Fold7 and strong flagship sales. The figures resolve Samsung’s immediate semiconductor crisis, but one strong quarter does not settle the competitive race. The enduring signal is that AI memory has become important enough to turn a struggling division around—and demanding enough that any delay can quickly surrender leadership.
