Samsung Aims for 50% Margins as RAM, NAND Prices Climb in 2026

Samsung’s semiconductor division is staging a comeback as rising RAM and NAND flash prices lift profitability, driven by ongoing global memory shortages and strong AI demand.

Samsung targets $69 billion operating profit in 2026 amid memory boom

Samsung’s chip business appears to be entering a new growth phase after a difficult period marked by weak demand and oversupply. Now, tightening memory availability and higher average selling prices are reshaping the outlook for 2026.

According to ETNews, the company is aiming for an operating profit of $69 billion in 2026, representing a projected 121% year-over-year increase. The strategy centers on improving margins, optimizing production, and focusing on higher-value memory products.

DRAM becomes the main profit engine

The company plans to prioritize high-margin DRAM products, including next-generation solutions such as 96GB LPCAMM2 modules running at 9600 MT/s. These products cater to high-performance laptops and AI-enabled systems, where memory bandwidth and efficiency are critical.

Samsung is also focusing on its sixth-generation 10nm-class DRAM, known as the 1c node. Current yields for this technology reportedly stand at around 60%, below the desired 80–90% range. Improving yields remains key to unlocking stronger profitability.

Memory products already represent Samsung’s largest profit driver, with margins hovering near 50%. Strong AI-related demand has pushed DRAM operating profit above that level, reinforcing the company’s emphasis on server and data center memory.

HBM4 and shifting resource allocation

While High-Bandwidth Memory plays a crucial role in AI accelerators, it currently delivers lower profitability compared to standard DRAM. Samsung recently announced its HBM4 roadmap, signaling long-term ambition in the segment.

For now, the company plans to direct more resources toward server DRAM supply, where margins remain stronger. Once HBM yields stabilize, Samsung intends to increase investment in that segment as well.

This balanced approach allows Samsung to capture immediate gains from high-margin DRAM while preparing for future AI-driven HBM growth.

2nm GAA ambitions and foundry recovery

Beyond memory, Samsung is doubling down on advanced logic manufacturing.

The company aims to boost 2nm Gate-All-Around (GAA) chip orders by 130%. However, current 2nm foundry yields reportedly sit around 50%, highlighting the technical challenges involved.

Samsung projects that its foundry business will return to profitability by 2027, as yield improvements and increased customer orders strengthen its competitive position.

Memory shortage expected to continue through 2026

The broader industry backdrop favors Samsung’s strategy. Rising RAM and NAND flash prices reflect tightening supply conditions across global markets. AI servers, enterprise infrastructure, and next-gen consumer devices continue to drive demand higher.

Samsung expects its margin-focused production adjustments to remain in place through 2026, as memory prices are forecast to stay elevated.

In other company news, Samsung has also launched the Galaxy Book6 lineup in Europe, expanding its PC portfolio while its semiconductor arm powers the infrastructure behind the AI boom.

Via Wccftech