Samsung posts record Q2 results, says memory shortage will worsen in 2027

Samsung Electronics reported record second-quarter results as AI server demand lifted memory chip prices and shipments, and it said the global memory shortage is expected to worsen in 2027 and persist into 2028. On its July 30 Q2 2026 earnings call, executive VP Jaejune Kim said supply tightness in high-bandwidth memory for AI workloads is outpacing production, with nearly all customers now seeking multi-year supply agreements rather than traditional quarterly or annual deals. Samsung reported second-quarter revenue of 171.5 trillion won ($119 billion) and operating profit of 89.5 trillion won ($62 billion), while its chip division posted semiconductor profits that rose more than 250-fold from a year earlier and overall net profit increased 14 times from the same period last year, according to the newer report. The company said demand should remain strong in the second half as AI infrastructure expands and agentic AI adoption broadens. The results came after SK Hynix reported record quarterly revenue of 60.5 trillion won ($42 billion), highlighting continued strength in AI-linked memory demand. Despite the earnings, shares of Samsung and other South Korean chipmakers fell this week as investors focused on the cost of aggressive capacity expansion and the risk of stronger Chinese competition. Samsung said it has secured long-term supply contracts with the "five major global data center clients," is in talks with other large technology companies, and plans to begin construction of its second semiconductor fab in Taylor, Texas, before year-end, targeting production by 2030.