Samsung Electronics achieved record first-quarter 2025 revenue, with its emphasis on artificial intelligence proving a significant buffer against ongoing headwinds in the semiconductor sector. The company reported KRW 79.14 trillion ($55.4 billion) in revenue, a 10% year-over-year increase, alongside an operating profit of KRW 6.7 trillion ($4.68 billion).
Driving this success was the Mobile Experience (MX) Business, fueled by strong sales of the AI-powered Galaxy S25 series. In contrast, the Device Solutions (DS) Division, which includes semiconductors, experienced a 42% drop in operating profit, primarily due to difficulties in the HBM market.
Looking ahead, Samsung anticipates potential challenges in the second quarter, citing global trade tensions and slowing economic growth as causes for concern, with specific attention to potential impacts from US tariffs on its Vietnam and South Korea production facilities.
Despite these challenges, Samsung reaffirms its commitment to AI, increasing R&D spending by 16% in the first quarter. The company aims to expand its AI smartphone offerings and enhance its foldable devices with more advanced AI features.
In the semiconductor domain, Samsung plans to bolster its position in the high-value segment by focusing on a server-centric portfolio and accelerating the production of advanced HBM3E memory. They anticipate robust AI-driven demand to continue into the latter half of 2025.
The company’s foundry business is committed to its 2nm Gate-All-Around (GAA) process development, which remains on track, with the AI powered products offering a significant competitive advantage.
While Samsung’s AI-enabled smartphones are performing well, its semiconductor business is facing increased competition. Notably, local rival SK Hynix has surpassed Samsung in overall DRAM market revenue.
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