Samsung Electronics Co., Ltd.
Samsung Electronics Co., Ltd. engages in the consumer electronics, information technology and mobile communications, and device solutions businesses worldwide. The company operates through four divisions: Device eXperience (DX), Device Solutions (DS), SDC, and Harman. The company offers smartphones, tablets, audio sounds, watches, switches, and accessories; TVs, and sound devices; appliances, including refrigerators, washing machines and dryers, vacuum cleaners, cooking appliances, dishwashers, air conditioners, and air purifiers; monitors and memory storage products; displays, and smart and LED signages; and other accessories. It also engages in venture capital investments, cloud services, network devices installation, semiconductor equipment services, digital advertising platforms, marketing, consulting, connected services provider, logistics, financing, and software design activities. In addition, the company provides toll processing and sales of semiconductors and display panels; development and sale of network solutions; manufacture of semiconductors and food; the provision of repair services for electronic devices; and development and supply of semiconductor process defect and quality control software, as well as digital televisions, foundry, system large scale integration (LSI). Further, it provides connected car systems, audio and visual products, enterprise automation solutions, and connected services. Samsung Electronics Co., Ltd. was incorporated in 1969 and is based in Suwon-si, South Korea.
What does it do?
Samsung is one of the most recognizable tech companies on the planet — the people who make Galaxy smartphones, QLED TVs, and home appliances like fridges and washing machines. But that's only half the story. Samsung also manufactures the chips and memory that power devices made by Apple, Nvidia, and dozens of other companies. Think of them as both a car brand and the factory that makes engines for everyone else's cars.
Samsung sits at the center of the global semiconductor supply chain, meaning when AI demand surges, Samsung is one of the first companies that needs to deliver the memory chips that make AI systems run. With the AI infrastructure buildout accelerating in 2024 and 2025, investors are watching Samsung closely to see if it can recapture chip market share it has been losing to rival SK Hynix. Its sheer scale — $428 billion in market value — means moves in Samsung's stock ripple across the broader tech sector.
How does it make money?
Samsung makes money across four main divisions. The Device eXperience (DX) division sells Galaxy phones, tablets, TVs, and appliances directly to consumers — this is the business most people recognize. The Device Solutions (DS) division makes semiconductors, including DRAM and NAND flash memory chips, sold to other tech companies — this is historically the most profitable part of the business. The SDC division makes the OLED screens used in Samsung's own phones and in Apple's iPhones. Revenue grew from roughly $301 billion to $334 billion year-over-year, a meaningful jump driven largely by recovering chip prices.
Why do investors care?
The core investment idea is simple: chip cycles go up and down, and Samsung is coming out of a brutal downturn. Memory chip prices collapsed in 2022 and 2023 as demand fell off a cliff, hammering Samsung's profits. Now, with AI servers requiring enormous amounts of high-bandwidth memory (HBM — a premium type of chip that handles data faster), there is a new and growing reason for companies to buy Samsung's chips. For the thesis to work, Samsung needs to win HBM supply contracts with Nvidia and close the technology gap with SK Hynix, which currently leads in that market.
Deep Dive
MemberA full investor briefing on Samsung Electronics Co., Ltd. — history, leadership, risks, and outlook.