The rapid expansion of artificial intelligence is transforming the global technology sector, with semiconductor manufacturers emerging as some of the biggest beneficiaries. South Korea’s Samsung Electronics reported record financial results for the second quarter of 2026, driven by unprecedented demand for AI memory chips and data centre infrastructure.
Samsung posted an operating profit of 89.5 trillion won (around $62 billion), an increase of more than 1,800% from a year earlier. Revenue reached a record 171.5 trillion won, supported by booming sales of HBM, DRAM and NAND memory products used in advanced AI processors.
The AI boom has also lifted Samsung’s domestic rival SK Hynix, which reported record revenue of 60.5 trillion won, although earnings fell slightly short of market expectations. Together with US-based Micron, the two South Korean companies have become key suppliers of memory chips powering AI systems developed by Microsoft, Google, Amazon and OpenAI.
Despite record profits, investors reacted cautiously. Shares of both Samsung and SK Hynix declined as markets questioned whether the current pace of AI infrastructure investment can be sustained. Nevertheless, both companies expect global shortages of advanced memory chips to continue through 2028, supporting further expansion plans.
Competition is intensifying across the semiconductor industry. Nvidia, Micron, Taiwan’s TSMC, Samsung and SK Hynix are investing hundreds of billions of dollars in new manufacturing capacity. South Korea has also announced a national semiconductor initiative under which Samsung and SK Hynix plan to invest approximately 800 trillion won in one of the world’s largest chip manufacturing hubs.
Industry analysts describe the current AI-driven semiconductor expansion as a technological transformation comparable to the rise of the internet. While AI software companies attract most public attention, it is chip manufacturers that are building the infrastructure powering the next generation of artificial intelligence.
