Archive · 30 Jul 2026
Samsung Sees Chip Shortage Extending to 2028, Touts Long‑Term Deals
Samsung Electronics made a huge profit jump in the second quarter of 2024, earning more than 250 times what it did a year earlier.
The company signed long‑term contracts with the biggest data‑centre companies to supply memory chips for a large part of its production.
Samsung says chip shortages will get worse and last until 2028, which worries investors.
Its mobile division lost money because chip prices rose.
Samsung is also thinking about giving shareholders special dividends, even though its stock fell a bit last month.
Samsung Electronics reported a 250‑fold jump in chip operating profit, reaching 89.2 trillion won in Q2 2024.
The company signed multi‑year supply agreements with the five largest global data‑centre operators, covering about two‑thirds of its memory output.
Samsung expects global chip shortages to worsen and extend into 2028, while investors worry about AI infrastructure costs.
The firm’s mobile division posted a 700 billion‑won loss as soaring chip prices hurt its margins.
Samsung is exploring special dividends and shareholder returns amid a 40% stock decline in the last month.
- Who
- Samsung Electronics, market analysts, global data‑centre operators
- What
- announced multi‑year supply deals and reported a 250‑fold profit surge
- When
- Q2 2024, announced Thursday
- Where
- Seoul, South Korea
- Why
- to secure long‑term supply, hedge against price volatility, and meet AI demand
- Operating profit (Q2 2024)
- 89.2 trillion won ($61.7 B)
- Revenue (Q2 2024)
- 171.5 trillion won
- Supply deals coverage
- about two‑thirds of memory output
- Shortage outlook
- extending to 2028
- Stock movement
- down 0.7% after rising 8.4%