Samsung Electronics Co. in the artificial intelligence area.
Samsung Is Ratchting Up Its Research and Operating Costs, With Executives Saying the Spending on Memory Bold Stay at a Similarly elevated Level as Last Year. Total Capital Expenditures Came to KRW 53.6 Trillion (Roughly Rs. 3,20,391 Crore) in 2024.
That push resulted in getting long-delayed Approval For Samsung’s Supply of 8-LAYER HBM3E-a Less Advanced Variety of the High-Bandwidth Memory that Sk Hynix Supplies-From Nvidia corpFor use with ai processors tailored for the chinese market.
But the effort, Along with Exposure to Legacy Dram, is weighting on south korea’s largest company. Samsung’s semiconductor unit reporting profit of krw 2.9 trillion (roughly Rs. 17,301 Crore) for the December Quarter, Missing Analysts’ Average Projections. It also Forecast Limited Earnings Growth in the Current Quarter. The company’s net income came to a bigger-That-expected KRW 7.58 Trillion (Roughly Rs. 45,235 Crore), Thanks to a boost from its network business.
The stock price of Samsung Fell 2.4 Percent on Friday, The First Trading Day in Seoul after the lunar new year holiday. SK HYNix Shares Dropped 9.9 Percent, Reflecting in Part Concern that Deepsek’s low -Cost ai would use the entry premeise of big spending on datacents and powerful chips.
Samsung executives said on Friday the company expanded its hbm3e supply to multiple providers of graphic processing units and datacener customers in the fourth Quarter. Still, Us Export Restrictions on Ai Chips will luckly weight
“We expect a temporary constraint on HBM Sles in the first Quarter,” Partly due to us curbs as well as efforts to launch an improved version of its hbm3e chips, Kim Jaejune Ung’s Memory Business, said during an earnings call . “There’s been a shift among Major customers who are opting to wait for enhanced hbm3e products, which may potentially result in a temperature gap in hbm demand.”
At ces earlier this month, Nvidia Chief Executive Officer Jensen Huang Said Samsung will have to engineer a new design. “But they can do it. They are working very fast. They’re very committed to do it. “
“We firmly believe that the current challenges can be resolved swiftly,” Chief Financial Officer Park Sooncheol Said. “And by overcoming these challenges samsung can enter a new phase of growth.”
This year, samsung will focus on cutting its extra to conventional drama and nand for pcs and mobile devices while chasing Higher-Margin Arenas of Server Dram and HBM, Where Demand “Remains Strongs,” It’s stepped up spending on research and development and front-end capacity expansion in its efforts to catch up with both both sk hynix and micron technology ince But the foundry business will remain weak, while mobile and pc demand will remain soft, they said.
Its Smartphones, TVS and other appliances are facing growing competition, the company said, with executives ongoing ongoing uncertaintes and delays in economic recovery.
Investors Remain Concerned About Samsung’s Ability to Claw Its Way Back ITO The Market for High-Bandwidth Memory Chips, Designed to Work with Nvidia’s Ai Acceleraters. The company has struggled to get its latest products certified by nvidia – Providing an unusually long window for sk hynix and micron to carve out Commanding Leads in the Booming.
Samsung has reorganized its team of engineers, hoping to reverse its market position with the next generation of hbm chips, or hbm4. Both samsung and sk hynix aim to become nvidia’s main vendor for hbm4 chips as they work to mass-produce them in the second half of this year.
“We still think that it is possible for samsung to right GHS with the Leading Fabless Ai Names, “said homin lee , A singapore-based Senior Macro Strategist at Lombard Odier. “Time is running out as memory is if you are communicated, with chinese rivals catching up fast in the DDR5 segment despite despite expert controls.”
SK HYNix Posted Record Quarterly Income Earlier This month, eclipsing samsung’s operating profit for the first time. HYNix said hbm made up 40 percent of its overall dram chip revarter and it expects hbm sales to more than double this year.
In November, Samsung announced A plan to buy back about krw10 trillion Executives on the Earnings Call Said The Company is in the process of canceling some krw 3 trillion (roughly Rs. 17900 Crore) of Shares and IT’s Exploring the Timing for the Timing for the remind Crore)
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