SEOUL, August 2, 2026, 05:07 KST — The Korea Exchange remains shut for the weekend. Trading will start again on Monday at 09:00 KST.
- Samsung finished Friday at 262,500 won, rising 26.8%. The stock advanced 5.2% for the week.
- Of Samsung’s 89.5 trillion won operating profit, semiconductors contributed 89.2 trillion won.
- South Korean chip exports surged 179% in July from the previous year, according to preliminary data.
Samsung Electronics Co., Ltd. KRX:005930 begins Monday facing a sharply defined earnings outlook, with its semiconductor unit accounting for 99.7% of operating profit in the second quarter.
This means that long-term memory contracts serve as more than just a semiconductor play. They now function as earnings protection at the group level.
Phones, TVs, and appliances are no longer generating significant profit margins. Samsung’s disclosed segment data highlights the change.
| Q2 2026 unit | Sales | Operating profit | Margin | Share of group profit |
|---|---|---|---|---|
| Consolidated group | 171.5 trln won | 89.5 trln won | 52.2% | 100.0% |
| Device Solutions | 127.5 trln won | 89.2 trln won | 70.0% | 99.7% |
| Device Experience | 48.0 trln won | -0.8 trln won | -2.0% | -0.9% |
| Samsung Display | 7.5 trln won | 0.7 trln won | 9.0% | 0.8% |
| Harman | 4.6 trln won | 0.4 trln won | 9.0% | 0.4% |
Reported figures are used to determine profit shares. Segment sales account for intercompany transactions between Samsung units.
The Device Solutions unit reported a 70% margin. The group’s margin stood at 52.2%. Device Experience posted a loss of 800 billion won.
“The chip narrative has weakened. Investors are questioning how long their record-high margins will be sustainable,” analyst Kim Seok-hwan said. Concentration risk remains a worry. Reuters
Samsung is responding with contracted supply, aiming for multi-year deals that encompass approximately two-thirds of its memory production.
Memory head Jaejune Kim said, “Almost all customers are requesting multi-year supply contracts.” These agreements feature upfront payments and price floors. Reuters
Samsung has signed contracts with five leading data-centre operators and is close to securing agreements with five more, the company reported. Most of these deals are expected to run for a minimum of five years.
HBM4 sales are projected to increase more than threefold in the third quarter. Samsung anticipates continued tightness in memory supply throughout the second half.
SK hynix Inc. KRX:000660 and Micron Technology, Inc. NASDAQ:MU are implementing comparable measures. Samsung continues to see its semiconductor margin lag those of its memory-centric rivals.
| Company or unit | Latest reported period | Revenue | Operating profit | Operating margin | Contract position |
|---|---|---|---|---|---|
| Samsung Device Solutions | Q2 2026 | 127.5 trln won | 89.2 trln won | 70.0% | Aims for roughly two-thirds of production |
| SK hynix KRX:000660 | Q2 2026, preliminary | 79.3 trln won | 60.5 trln won | 76.0% | Long-duration deals with about 10 buyers |
| Micron NASDAQ:MU | Fiscal Q3 2026 | $41.46 bln | $33.32 bln | 80.4% | 16 key contracts, and $18 bln in customer deposits |
Periods, currencies and business mixes vary. Micron’s margin is GAAP; SK hynix data are still preliminary.
The comparison is not precise, as Samsung’s chip division encompasses memory, logic operations, and foundry businesses.
The surge on Friday exaggerates the week’s performance. Samsung closed up just 5.2% from a week earlier, after suffering steep declines midweek.
| Asset | July 31 close | Friday move | July 24–31 | Below 52-week high |
|---|---|---|---|---|
| Samsung Electronics | 262,500 won | up 26.8% | gained 5.2% | off 29.9% |
| SK hynix | 1,718,000 won | rose 30.0% | dipped 2.3% | down 42.5% |
| KOSPI | 6,595.45 | advanced 17.9% | lost 1.4% | — |
| Micron | $823.03 | dropped 6.0% | fell 10.6% | slipped 34.4% |
Calculations for weekly movements and gaps from yearly peak levels are derived from closing prices.
New demand figures back the bullish outlook. Early July chip exports rose 179% compared to the same month last year.
Exports of computers surged by 404%. Overall, South Korea’s exports climbed 62.8% to $98.89 billion, surpassing the 59% growth predicted in a Reuters survey.
The available cash provides flexibility for management. According to company data, operating cash flow minus capital expenditures totaled approximately 91.0 trillion won.
Net cash was reported at 167.59 trillion won. Samsung is in talks over the possibility of special dividends and wider shareholder return policies.
This week features two company events. Samsung wraps up its domestic investor meetings on August 3, and its newest foldable phones become available in stores on August 7.
Risks: A downturn in memory prices could impact the majority of the group’s profits. Any deceleration in AI investment may affect contract orders. Persistently high component prices could increase consumer losses.
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