Boosted by a recovery in the semiconductor industry, Samsung Electronics achieved an operating profit of 10.4 trillion won ($7.52 billion) in the second quarter of this year, constituting an earnings surprise. The figure not only marks a 14.5-fold surge in operating profit from a year ago, it also surpasses the Korean tech giant's earnings for all of last year. It is the first time Samsung posted more than 10 trillion won in operating profit since the third quarter of 2022.

The recent boom can be largely credited to a significant increase in demand for DRAM chips, driven by the thriving AI sector. Coupled with steady increases in the prices of related products like NAND flash memory, the semiconductor sector has been driven to achieve higher levels of performance. Analysts predict this boom in the memory chip sector to persist for some time, potentially enabling Samsung to achieve an operating profit of up to 12 trillion won in the third quarter.

Prompted by the brisk sales, the nation's entire economy has also shown signs of recovery, as seen in the benchmark KOSPI's recent bullish trend. Besides Samsung, other domestic electronics companies have also been faring well. LG Electronics, for instance, achieved an operating profit of more than 1 trillion won in the second quarter, up 60 percent from a year earlier. SK hynix is also expected to announce an earnings surprise soon, powered by the thriving high-bandwidth memory (HBM) business.

The outstanding earnings performances of the tech titans are energizing the national economy, contributing to a current account balance of $8.92 billion in May, which was the largest amount in 32 months. The recent positive development in Korea's economy, led by the semiconductor industry, is highly encouraging.

However, it seems premature to pop the champagne, considering the rapidly evolving global semiconductor competition. Major countries like the United States, Japan and European nations are aggressively striving to maintain their competitive edge, investing tens of trillions of won to bolster their chip industries. Additionally, they are offering various forms of assistance to domestic firms, including deregulatory measures.

Korea has long held the top position globally in the memory chip sector. However, fierce competition from international rivals has significantly altered this landscape. In response to the escalating demand from major global companies like Nvidia, Samsung has unveiled plans to establish a dedicated unit to manufacture HBM. This move aims to capitalize on the burgeoning market for these products, particularly crucial for AI applications. Notably, profitability in the HBM unit surpasses that of DRAM, underscoring its strategic importance in the semiconductor industry.

Samsung has also been desperate to catch up with TSMC of Taiwan in the foundry sector. Currently, Samsung accounts for 11.3 percent of that market, compared to TSMC's 61.2 percent. Samsung has recently been focusing on buttressing the foundry business by establishing plants in Korea and the United States.

The semiconductor industry requires a huge amount of investments, and the companies can sustain their competitiveness by pouring large proportions of their profits into research and development. Last year, Samsung Electronics saw a record deficit of 15 trillion won at its chip unit due to a sluggish memory business. This means the company should not be complacent about its recent performance and should maintain a high level of vigilance.

The Yoon Suk Yeol administration needs to accelerate efforts to fulfill its commitment to establish the world's largest semiconductor cluster in Yongin, Gyeonggi Province. This includes developing essential infrastructure such as industrial water supply, roads, and ensuring an adequate pool of skilled workers. The main opposition Democratic Party of Korea (DPK) deserves recognition for introducing a semiconductor special bill that proposes raising the tax exemption rate for investors from the current 15 percent to 25 percent. Now, the government and lawmakers should combine their efforts to nurture the semiconductor industry, the critical mainstay industry of Korea Inc.