Samsung
Samsung is a South Korean multinational conglomerate headquartered in Suwon, South Korea, and one of the world's largest producers of consumer and industrial electronics. Founded on March 1, 1938 by Lee Byung-Chull as a grocery trading store in Daegu[^c1], the company grew under the chaebol system to become Korea's largest business group. In the twenty-first century, Samsung became the world's largest manufacturer of smartphones, smart TVs, and memory chips[^c2].
In the second quarter of 2026, Samsung posted preliminary operating income of 89.4 trillion won ($58 billion) on revenue of 171 trillion won — a 19-fold year-on-year surge driven by AI-driven demand for HBM and memory chips, far exceeding analyst estimates[^c30]. The semiconductor division accounted for the overwhelming share of earnings as DRAM selling prices rose over 40% quarter-over-quarter and NAND prices rose over 50%. Samsung's memory division generated an estimated 140 trillion won in operating profit in the first half alone, with full-year operating profit potentially approaching 350 trillion won[^c31]. Analysts expected memory shortages to persist until at least 2027.
In fiscal year 2025, Samsung posted all-time high annual revenue of KRW 333.6 trillion[^c9]. The first quarter of 2026 set new records: operating profit surged 756% year-over-year to 57.23 trillion won on revenue of 133.87 trillion won, nearly matching the company's all-time annual record in a single quarter[^c10][^c12]. The semiconductor division contributed 94% of total profit, reflecting the overwhelming dominance of memory and HBM sales. Samsung captured approximately 30% of Nvidia's HBM4 orders, breaking SK hynix's exclusive supply position[^c13], and was designated the primary HBM4 supplier for AMD's Helios AI server rack[^c34]. The foundry division secured major new customers including the Tesla AI5 chip tapeout — completed 45 days ahead of schedule[^c22] — and expanded cooperation with Apple, AMD, and Qualcomm on 2nm production[^c20]. Samsung Foundry also entered talks with Meta to produce a next-generation AI accelerator ASIC worth more than 10 trillion won on its 2nm process[^c38]. Apple executives visited Samsung's Texas fab in May 2026 to discuss potential chip production, exploring a return to Samsung's foundry after more than a decade[^c36]. Samsung's 2nm yield improved to above 60% as of the first quarter[^c37].
During a San Francisco AI Summit in July 2026, Samsung Group announced a $200 billion-plus MOU with Broadcom spanning HBM memory, 2nm foundry, and advanced packaging through 2030[^c32][^c33]. Samsung SDS also entered a strategic partnership with Anthropic to deploy Claude enterprise AI across Korean businesses[^c35]. The combined AI and semiconductor partnerships between Korean conglomerates and US Big Tech firms reached approximately $950 billion[^c32].
In July 2026, Samsung held Galaxy Unpacked in London, unveiling a redesigned Galaxy Z Fold8 with a passport-style wider form factor equipped with Flex Titanium technology, alongside the Galaxy Z Fold8 Ultra (the first Ultra variant of its book-style foldable), and the Galaxy Z Flip8. Samsung also introduced Intelligent Eyewear, AI-powered smart glasses developed with Google, Qualcomm, Gentle Monster, and Warby Parker. The event aimed to preempt Apple's first foldable iPhone expected later in 2026[^c30]. Samsung also announced a share repurchase program approaching 90 trillion won ($63 billion) to fund employee stock bonuses, causing its stock to surge nearly 10% and reclaim Korea's top market capitalization from SK Hynix. Chip division employees received performance bonuses of up to 100% of base salary for the first half of 2026.
In 2026, Samsung formalized its AI strategy around three pillars — semiconductors, devices, and robotics[^c5] — and initiated the largest investment commitment in South Korean corporate history. For 2026 alone, Samsung Electronics disclosed a record 110 trillion won ($73.5 billion) facilities and research investment — a 21.7 percent increase from 2025 and the first time annual spending surpassed 100 trillion won[^c39]. The group announced a plan to invest up to 1,000 trillion won ($651 billion) over a decade across four Korean regions, encompassing a front-end semiconductor fab in the Honam region, display and battery expansions in Chungcheong, and biotech expansion in Incheon[^c23].
Samsung TV Plus, the company's free ad-supported streaming service, surpassed 100 million monthly active users by early 2026, establishing Samsung as a global media platform beyond hardware[^c40]. The company expanded into digital health with a "Connected Care" vision at VivaTech 2026[^c19], developed the industry's fastest UFS 5.0 storage solution for on-device AI[^c25], and launched the Galaxy A27 5G mid-range smartphone with multi-object Circle to Search[^c26]. As the AI semiconductor market diversified beyond Nvidia GPUs toward TPU, NPU, and ASIC chips, Samsung's integrated device manufacturer structure was positioned as a potential advantage over rival SK hynix, which had gained primarily from HBM supply leadership[^c21]. Samsung entered early-stage discussions with AI company Anthropic to manufacture custom AI chips using its 2nm foundry process[^c29]. The DX division's "Thank You Festival" promotion drove a 75% surge in store foot traffic and an estimated 2 trillion won in sales[^c28].
The Lee family completed the final instalment of the record 12 trillion won inheritance tax on the estate of late chairman Lee Kun-hee in May 2026, cementing Chairman Lee Jae-yong's control. Samsung also faced significant challenges, including escalating union disputes, its foundry division's continued losses[^c17], and a May 2026 withdrawal from the China home appliance market after 34 years[^c8]. Post-wage agreement, internal tension between the semiconductor and finished-product divisions intensified, with DX employees protesting bonus disparities in a viral video.