Since this is a translation of an overseas article, there may be mistranslations.
https://wccftech.com/samsung-semiconductor-business-aiming-for-50-percent-profit-margin/
Samsung's High Profit Margin Strategy, Semiconductor Business Aims for 50% Operating Profit Margin
To achieve this new goal, Samsung is expected to shift its production system to a mass production method for other products.
Samsung's semiconductor business is showing signs of recovery. The main growth driver in this sector is the current price increase of RAM and NAND flash due to supply shortages, and the Korean giant Samsung has been actively capitalizing on this.
However, Samsung is not stopping here and has set a high goal for securing a healthy profit structure this year. According to projections, operating profit in 2026 is expected to reach $69 billion, a 121% increase from the previous year. To achieve this figure, a new report has emerged stating that Samsung will aim for a 50% profit margin by adjusting its semiconductor business strategy and production lines.
With increased orders for 2nm GAA chips and soaring DRAM prices, Samsung is expected to focus on these two areas to achieve its profitability goals.
Samsung's core strategy is to shift resources to high-profit products such as DRAM. According to ETNews, Samsung is focusing on 10nm-class 6th generation DRAM, also known as '1c', and the higher the yield, the greater the profitability will be. The current yield of this technology is estimated at 60%, but it has yet to reach the target of 80~90%.
Currently, memory products are recording a 50% profit margin due to increased demand and are playing the biggest role as Samsung's cash cow. However, Samsung has also begun focusing on the 2nm GAA process, aiming for a 130% increase in chip orders. With the yield reportedly reaching 50%, Samsung Foundry's business has secured a much more advantageous position, and previous reports suggested that profitability in the foundry business could be achieved by 2027.
Due to the explosive demand for AI, Samsung's DRAM operating profit margin is exceeding 50%, but high bandwidth memory (HBM) is recording a lower margin. According to the latest report, Samsung plans to focus on supplying server DRAM to increase margins and will allocate resources to this sector once HBM yield stabilizes. With industry expectations that memory prices will continue to rise throughout 2026, Samsung's new strategy is expected to remain effective until the end of the year.
▶ Source: https://wccftech.com/samsung-semiconductor-business-aiming-for-50-percent-profit-margin/
