Samsung MX and Network Businesses Post First Loss as Semiconductor Revenue Surges
Samsung Electronics' Mobile eXperience (MX) and Network (NW) businesses recorded their first-ever combined quarterly loss of -0.7 trillion KRW in Q2 2026. Meanwhile, its Device Solutions (DS) semiconductor division experienced massive growth, with memory revenue surging over 500% year-over-year to 120.8 trillion KRW. This shift highlights a major transition in Samsung's profit drivers, where its traditional cash cow, the mobile division, is facing financial headwinds while the AI hardware boom is driving unprecedented demand for its semiconductor and memory products. While the MX and NW combined revenue fell 13% quarter-over-quarter, the DS division achieved a 70% operating profit margin. Additionally, Samsung's foundry business secured a design win for a major customer's 2nm High-Performance Computing (HPC) project.
## BACKGROUND
Samsung's System LSI division designs a wide range of non-memory chips like processors, image sensors, and modems, while its foundry manufactures chips for external clients. High-Performance Computing (HPC) refers to advanced computing platforms designed to handle intensive workloads, which are crucial for running modern artificial intelligence applications.