Samsung Electronics posted its highest-ever quarterly earnings, driven by the semiconductor supercycle, but internal cracks are widening. The company's first-quarter operating profit exceeded 57 trillion won, with the DS Division (semiconductors) contributing 54 trillion won—94% of total profit. While demand for AI and rising memory prices point to another record-breaking second quarter, the heavy reliance on chips is problematic.
The Device eXperience (DX) Division, covering smartphones and home appliances, is seeing slowing profitability. Although TV and home appliance units returned to profit, margins have weakened year-over-year. As a result, Samsung is reportedly reviewing a drastic business restructuring plan. Additionally, the potential for a general strike is adding to internal tensions, raising questions about the company's long-term stability despite its stellar financial performance.