Samsung posts over 250-fold rise in Q2 chip profit; sees chip shortage extending to 2028 due to AI boom

**Summary:**

Samsung Electronics expects the global chip shortage to worsen and stretch into 2028, driven by massive AI demand. Despite market fears of a slowdown in AI spending, the company reported a massive 250-fold surge in Q2 chip profits ($61.7 billion USD), though rising component costs pushed its mobile division into a 700 billion won loss.

To hedge investment risks, Samsung is securing 5-year long-term supply deals covering 60% to 70% of its capacity with major global data center firms, featuring floor pricing and upfront payments. Analysts praised the reassuring outlook, which briefly sent Samsung's stock up 8% before it settled slightly lower.

[https://www.businesstimes.com.sg/companies-markets/samsung-posts-over-250-fold-rise-q2-chip-profit-sees-chip-shortage-extending-2028-due-ai-boom](https://www.businesstimes.com.sg/companies-markets/samsung-posts-over-250-fold-rise-q2-chip-profit-sees-chip-shortage-extending-2028-due-ai-boom)