Samsung Bets on AI Chip Boom In 2026 But Warns of Smartphone and PC Risks

Samsung Electronics is betting on continued strong demand for chips in 2026, driven by the global surge in artificial intelligence (AI), even as it warns of potential pressure on its consumer electronics business.

Speaking at the company’s annual shareholder meeting, vice chairman and co-CEO Jun Young-hyun said the growing adoption of AI technologies is expected to sustain high demand for memory chips. He noted that supply constraints in memory could further support a favourable business environment for the semiconductor division.

Samsung’s chip business has been a major growth driver, with the company’s shares surging sharply this year and outperforming the broader South Korean market. The rally reflects investor optimism around AI-led demand for advanced semiconductors, particularly those used in data centres and high-performance computing.

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However, the company flagged risks as well. Rising memory chip prices could impact shipments of smartphones, PCs, and other consumer devices by increasing overall costs. Jun highlighted broader uncertainties such as global tariff issues and macroeconomic pressures that could weigh on demand for televisions, mobile phones, and home appliances.

Despite these concerns, Samsung remains optimistic about its semiconductor outlook, positioning itself to capitalise on the AI boom while navigating challenges in its traditional electronics segments.

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