Samsung’s Chip Unit Beats Forecasts as Customers Stockpile Ahead of U.S. Tariffs

Samsung Electronics Co.’s chip business outperformed analyst estimates in the March quarter, driven by a global rush to stockpile semiconductors ahead of impending U.S. tariffs.

The division — a key pillar of South Korea’s largest company — reported ₩1.1 trillion in operating profit and ₩25.1 trillion in revenue, matching consensus estimates. The rebound was supported by improved demand in PC memory and smartphones, including shipments tied to its flagship Galaxy S25.

Clients Accelerate Shipments

Major global clients such as Apple Inc. and Lenovo Group Ltd. accelerated shipments to the U.S. during Q1 in anticipation of new tariffs from the Trump administration, helping drive the early revenue surge.

Samsung had previously signaled stronger-than-expected earnings in preliminary results earlier this month.

Long-Term Demand Still in Question

Despite the upbeat quarterly figures, analysts are cautious about future growth. Canalys and others believe much of the Q1 strength may have pulled demand forward from later in the year. Any escalation in U.S.–China trade tensions could further disrupt global supply chains and slow orders in the second half.

High-Bandwidth Memory Challenges

Samsung continues to face difficulties in the high-bandwidth memory (HBM) segment, a fast-growing market critical to powering AI accelerators. The company has yet to secure final approval from Nvidia Corp. for its most advanced HBM products.

SK Hynix, Samsung’s rival based in Icheon, maintains the top spot in this category and has become the preferred supplier for high-end AI chips.

Foundry Business Under Pressure

Samsung’s contract chip manufacturing unit is also struggling, with a lack of large-scale client orders limiting its growth. The company holds just 9.3% of the global foundry market, far behind Taiwan Semiconductor Manufacturing Co. (TSMC), which dominates with nearly two-thirds market share.