South Korean tech giant Samsung Electronics today estimated that its operating profit for the second quarter will increase approximately 19 times year-on-year, driven by strong demand for AI-driven memory chips.

According to AFP, the world's largest memory chip manufacturer Samsung stated in a release that it expects its operating profit for the second quarter from April to June to reach 89.4 trillion Korean won (approximately NT$1.9 trillion), a staggering increase of 1810% compared to the same period last year.

The global demand for advanced memory chips used in AI data centers is fervent, and the South Korean semiconductor giant has benefited this year, achieving record high profits.

This wave of prosperity has also intensified labor demands for higher wages, and after reaching an agreement with employees on a bonus plan, Samsung avoided a major strike that was originally scheduled for May.

Yonhap News Agency cited data from its subsidiary, stating that the financial forecast released today exceeded market estimates by 6.2% and set a new quarterly historical record.

Samsung indicated that its revenue for the second quarter could increase by 129%, reaching 171 trillion Korean won. Samsung is expected to release its final financial report at the end of this month.

Samsung and its domestic competitor SK hynix are currently participating in a massive public-private investment plan worth 800 trillion Korean won to build a new semiconductor manufacturing center in the southwest of South Korea.

Some analysts believe that delays in AI infrastructure investment could pose the biggest risk to the current memory market boom.

However, Counterpoint Research analyst MSHwang stated that he has not seen evidence that "the gap between supplier capacity and customer demand is narrowing."