On April 7, Samsung Electronics released its earnings forecast for the first quarter of 2026. Revenue is projected at approximately 133 trillion KRW, up 68% year-on-year; operating profit is estimated at around 57.2 trillion KRW, soaring 755% year-on-year. This figure far exceeded analysts’ expectations of 40.6 trillion KRW and set a new all-time high.
Industry analysts attribute Samsung Electronics’ better-than-expected Q1 profit primarily to the expansion of HBM4 production capacity. Amid explosive growth in AI demand in recent years, major DRAM manufacturers have prioritized shifting capacity to higher-margin HBM products, crowding out conventional DRAM output and driving a sharp rise in overall DRAM prices.
Analysts at Mirae Asset Securities noted that Samsung’s Device Solutions (DS) division, which encompasses its semiconductor business, was the biggest contributor to the profit surge. It generated an operating profit of 42 trillion KRW in the first quarter, accounting for roughly 70% of the company’s total operating profit.
According to a survey by TrendForce, the ongoing DRAM supply shortage will sustain strong price momentum into the second quarter of 2026, with contract prices for standard DRAM expected to rise by more than 50% quarter-on-quarter. Latest reports also indicate that Samsung Electronics has already signed second-quarter DRAM contracts with some customers at a 30% quarter-on-quarter price increase.
(Reprinted from https://news.eccn.com/）