From www.sammobile.com
SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission.
News for you
Last updated: January 2nd, 2024 at 11:41 UTC+01:00
The semiconductor division has long been one of Samsung’s most profitable business units. It’s been having a tough time of it recently, with the division reportedly losing $10 billion in 2023.
Samsung is looking to turn these fortunes around in spectacular fashion in 2024. The company is reportedly looking to earn 11.5 trillion won or approximately $8.8 billion in operating profit from its chip business this year. The stars are aligning for Samsung to achieve this goal.
AI is helping Samsung sell a lot of memory chips
The biggest reason why Samsung lost so much money on chips last year was the supply glut of DRAM and NAND flash memory. Samsung has made serious efforts over the past year to reduce wafer input and cut overall inventories.
The results were visible in from October to December 2023 as prices rebounded on the back of tighter supply. The company is also seeing a recovery in demand from PC and smartphone manufacturers, particularly high bandwidth memory (HBM) and computer express link DRAMs, aided by the AI boom.
Samsung is well positioned to take advantage of the memory demand that the AI boom is causing. Sources suggest that buyers are willing to pay up to $1 billion for each pre-order of HBM. Samsung has a 47-47% share in the global HBM market.
Existing inventories continue to post a risk for Samsung, though. It’s reportedly sitting on over $15 billion worth of memory inventories that it may have to sell at discounted prices as they’re outdated models. Samsung is also expected to continue cutting NAND output in a bid to further raise prices.
You might also like
Apple’s chips made by TSMC will be packaged in the US by Amkor
Amkor, one of the leading providers of packaging and test services for semiconductors, has announced that it is building an advanced packaging and test facility for semiconductors in Peoria, Arizona, USA. According to Amkor, once this facility opens, Apple will be its first and largest customer. At this facility, Amkor will package and test those […]
- By Abid Iqbal Shaik
- 4 weeks ago
Samsung to continue production cuts to narrow chip losses
According to the latest report, Samsung is all set to continue with its production cuts to narrow down chip losses in Q3 2023. The world’s largest chip maker started slashing its chip production earlier this year in the same move as its peers, SK Hynix Inc. and Micron Technology, to overcome the supply shortage. Analyst […]
- By Sagar Naresh
- 3 months ago
Samsung wants the US to keep allowing chip exports to China
The United States has made it very difficult for chip companies to export products manufactured with US technology to China. This is a result of the sanctions that the US has imposed on China. However, the country did grant exemptions to certain chip manufacturers in South Korea, including Samsung Electronics. South Korean semiconductor companies, including […]
- By Adnan Farooqui
- 6 months ago
Samsung thinks ChatGPT could boost its chip business
Samsung CEO indicated Wednesday that the company would invest more significantly in its robotics division this year to be better prepared for the rapidly advancing landscape of Artificial Intelligence (AI)-enabled machines, which will impact humans in meaningful ways in the foreseeable future. Han Jong-hee, the Vice Chairman of Samsung, spoke at the annual shareholders meeting […]
- By Priya Walia
- 10 months ago
Samsung’s competitor TSMC to kick off 3nm chip production this week
Apple’s main chip supplier and Samsung’s primary competitor, TSMC, is reportedly set to kickstart 3nm semiconductor chip mass production this week. The Taiwanese giant TSMC is a bit late to the party, but Samsung started 3nm semiconductor production around 6 months ago in June and unveiled the world’s first 3nm chips on July 25. Moreover, […]
- By Sagar Naresh
- 1 year ago
Apple could topple Samsung in global smartphone market in Q4 2022
The global smartphone market isn’t seeing happy numbers due to sluggish demand following the economic downturn and inflation reaching record highs in many countries. Amidst this, a research report by market research firm TrendForce notes that Apple is all set to dethrone South Korean giant Samsung in terms of market share in Q4 2022. According […]
- By Sagar Naresh
- 1 year ago
[ For more curated Samsung news, check out the main news page here]
The post Samsung wants to make $8.8 billion profit from chips in 2024 first appeared on www.sammobile.com