Samsung Electronics has issued a stark forecast, warning that the global semiconductor supply crunch is likely to intensify through 2027 and persist well into 2028. Despite this daunting outlook, the tech giant reported a massive financial windfall, with its chip division’s operating profit skyrocketing more than 250-fold to 89.2 trillion won. To stabilize its future in a volatile market, Samsung has begun securing long-term contracts with major data center operators. These agreements, which involve upfront payments and floor pricing, are designed to insulate the company from capital investment risks while locking in up to 70% of its long-term production capacity.

While the booming semiconductor sector has been a massive boon for earnings, it has created a complex internal imbalance for Samsung. The surge in chip costs has put significant pressure on the company’s mobile division, which recently recorded its first quarterly loss in years. Nevertheless, Samsung remains aggressive in its AI strategy, banking on rapid revenue growth from its high-bandwidth memory (HBM) chips and continued expansion of its foundry operations in Texas. With record-breaking revenue and a diversified cash flow, management remains confident that it can navigate these market headwinds without the need for external capital infusions, even as it works to close the gap with competitors in the high-stakes AI infrastructure race.