Samsung Electronics Q2 Earnings Deep Dive: Memory Chips Lead Asia-Pacific Semiconductor Recovery

July 26, 2026, Seoul — Samsung Electronics today announced its second-quarter results for the period ended June 30, 2026, with both revenue and operating profit exceeding market expectations. Against the backdrop of surging AI computing demand and expanding data center capital expenditure, the memory chip business became the biggest growth engine, driving a broad recovery in the Asia-Pacific semiconductor supply chain.

Key Earnings Figures at a Glance

According to the report, Samsung achieved revenue of 86.3 trillion KRW (approx. $65 billion) in Q2 2026, up 18.2% YoY; operating profit reached 14.5 trillion KRW (approx. $10.9 billion), skyrocketing 85.3% YoY, the highest quarterly profit since Q3 2022. Analysts had expected revenue of 84.1 trillion KRW and operating profit of 12.8 trillion KRW, so actual results significantly beat estimates.

By segment, the semiconductor division (DS) contributed the most. DS posted Q2 revenue of 34.2 trillion KRW, up 34% YoY; operating profit of 8.9 trillion KRW, turning from a loss of 2.1 trillion KRW a year ago, contributing over 60% of total profit. Among this, memory chip revenue was 28.6 trillion KRW, up 41% YoY, driven by strong shipments of HBM (high-bandwidth memory) and DDR5. With increased penetration of HBM3e at AI chip clients like Nvidia and AMD, Samsung's overall HBM shipments grew 55% QoQ, with ASP up 12% QoQ.

AI Memory Demand: HBM at the Core of a 'Super Cycle'

Samsung stated in its earnings call that demand for HBM from AI servers is "at an unprecedented explosive stage." HBM capacity utilization is near full, with plans to expand 30% more in H2 2026, mainly from new capacity at Pyeongtaek P4 plant. Additionally, LPDDR5X and GDDR7 for AI inference are also in short supply.

Industry analysts point out that advanced memory chips like HBM are leading Asia-Pacific semiconductors into a new "super cycle." Unlike the 2021-2022 cycle driven by consumer electronics, this cycle is fueled by AI infrastructure investment. Gartner forecasts the global AI chip market will exceed $120 billion in 2026, with memory accounting for about 35%. The combined capex of Samsung, SK hynix, and Micron is expected to surpass $80 billion, a record high.

Foundry Business: Capacity Utilization Recovery, Advanced Node Catching Up

Samsung's foundry business posted Q2 revenue of 7.8 trillion KRW, up 7% YoY and 12% QoQ. While slower than memory, it shows capacity utilization recovering from trough. Samsung said its 3nm GAA process yield has improved to about 75%, and it received additional orders from Qualcomm, Nvidia, and others. With further 4nm and 3nm capacity ramp-up in H2, foundry revenue is expected to grow over 15% QoQ.

However, Samsung still faces fierce competition from TSMC in advanced logic foundry. TSMC's Q2 results showed revenue up 32% YoY, with 3nm contributing 28%. In early July, TSMC announced its N3P process will enter mass production in Q4 2026, further widening the technology gap. Samsung plans to introduce 1.4nm (SF1.4) in 2027, using backside power delivery (BSPDN).

Asia-Pacific Semiconductor Supply Chain: Turning from 'De-stocking' to 'Re-stocking'

Samsung's stellar earnings are a microcosm of the broad recovery in Asia-Pacific semiconductor supply chain. Over the past two years, the global semiconductor industry underwent a deep de-stocking adjustment, especially with weak demand in consumer electronics (PC, phone, TV). However, since H2 2025, strong demand from the "new three" — AI servers, EVs, and industrial automation — plus inventory clearing in traditional areas, the industry has entered a re-stocking cycle.

Looking at recent earnings from major Asia-Pacific semiconductor companies, besides Samsung, SK hynix, TSMC, MediaTek, and Renesas Electronics all achieved significant YoY growth. SK hynix is expected to report Q2 results on July 28, with market consensus of operating profit surging over 200% YoY to about 8 trillion KRW. MediaTek, benefiting from inventory restocking of mobile SoCs and IoT chips, saw Q2 revenue up 15% QoQ.

However, risks remain. On one hand, US export controls on China continue to tighten, creating uncertainty for Samsung and SK hynix's China plants. On the other hand, rapid ASP increases for memory chips may curb procurement by server buyers. Nomura analysts note that HBM supply shortages may persist into H1 2027, but prices for other general memory (e.g., NAND) are near the cycle peak, warranting caution for a potential inventory correction in H2 2027.

Summary and Outlook

Samsung's Q2 earnings confirm that Asia-Pacific semiconductor industry has entered a new upcycle, with AI memory as the strongest growth pole. Looking ahead to H2, as Apple, Huawei and others launch new flagship phones, and AI PC/phone penetration rises, semiconductor demand is expected to broaden. However, geopolitical risks and capacity expansion pace remain key variables affecting industry sustainability.

Saifei Semiconductor News analysts believe investors should focus on: HBM capacity expansion and yield improvement progress, TSMC's technological breakthroughs in sub-3nm advanced nodes, and the pace of China's semiconductor localization in mature nodes. The Asia-Pacific semiconductor industry is undergoing a profound transformation from "cycle-driven" to "technology-driven," with AI, data centers, and smart vehicles defining the growth trajectory for the next five years.