Latest news with #HBM3
Mint
a day ago
- Business
- Mint
Samsung Chip Arm Logs Big Profit Miss in Sign of Widening Crisis
(Bloomberg) -- Samsung Electronics Co.'s semiconductor division reported profit that fell far short of expectations, reflecting a deepening crisis at the world's largest memory chipmaker. The pivotal unit reported operating profit of 400 billion won ($288 million) for the June quarter versus analysts' average projection for 2.73 trillion won, hurt by US export controls on high-bandwidth memory chips and losses at its foundry arm. South Korea's largest company, which gave grim preliminary operating profit and revenue numbers earlier in July, said on Thursday net income came to 4.93 trillion won, missing the analysts' estimate of 6.37 trillion won. Profit fell after Samsung's foundry arm, which relies in part on Chinese demand, booked a one-time inventory cost as export controls led to unsold AI chips. Usage rates also fell. The profit decline was despite solid demand for high-end memory products for servers, it said. Operating losses at its foundry unit are expected to narrow in the second half of the year on a gradual recovery in demand, the company said. Samsung's underwhelming quarterly report comes after the company won a $16.5 billion contract from Tesla Inc. to produce AI chips at an upcoming plant in Taylor, Texas. Its stock is up 10% since news about the agreement broke on Monday, bringing Samsung's gains in July to over 20% and putting the stock on track for its best month in more than four years. Samsung has been stepping up spending on research and development and front-end capacity in its efforts to catch up with SK Hynix Inc. and Micron Technology Inc. in AI memory chips. At the same time, it's been trying to win orders from large customers like Tesla to revive its ailing foundry division where operating rates have plunged. A successful implementation of the multi-year deal with Tesla would improve Samsung's prospects for winning more clients and validate its technology for 2-nanometer mass production. Investors are also looking for clues as to whether Samsung will benefit from Nvidia Corp.'s resumption of sales of its H20 AI chips to China. The Korean memory maker's less advanced HBM3 has been used alongside H20 chips in the past. Samsung has slowed completion of its Taylor plant, which now is scheduled to start operating in 2026. The company's struggled to win large customers away from the world's biggest contract chipmaker Taiwan Semiconductor Manufacturing Co., which has begun production in Arizona and is ramping up capacity in the US. Investors remain concerned about Samsung's ability to claw its way into the market for cutting-edge HBM chips, now dominated by SK Hynix. Samsung has struggled to get its latest products certified by Nvidia — providing an unusually long window for SK Hynix to carve out commanding leads in the booming AI memory market. --With assistance from Mark Anderson. More stories like this are available on
Korea Herald
22-07-2025
- Business
- Korea Herald
Diverging prospects: Samsung eyes rebound, SK braces for HBM shakeup
As fears of HBM oversupply mount, intensifying price competition puts pressure on chipmakers, reshaping AI memory landscape As concerns over a potential supply glut in the high-bandwidth memory market for artificial intelligence semiconductors intensify, South Korea's two memory chip giants — Samsung Electronics and SK hynix — are seeing sharply divergent stock performances. According to the Korea Exchange on Tuesday, so far in July, Samsung Electronics' shares have surged 13.38 percent on the country's main bourse, Kospi, outpacing the broader index's 4.53 percent rise. On the contrary, SK hynix's shares have dropped 6.68 percent during the same period. Analysts say growing fears of oversupply and falling prices in the HBM segment, a key component in AI chipsets, are driving foreign investors to offload shares. This is particularly the case for those of SK, since it holds the No. 1 position in the global HBM market. Samsung's entry into the market of sixth-generation HBM chips, known as HBM4, is expected to erode the price premium previously enjoyed by SK hynix with its fifth-generation HBM3E products. 'There are rising concerns in the market about potential oversupply of HBM from this year and onward,' said Ryu Young-ho, a senior analyst at NH Investment & Securities. 'It has triggered increased selling pressure on SK hynix shares.' At the same time, Samsung Electronics' stock — long overshadowed by SK hynix — has begun to recover as the company secured supply deals for both HBM3 and HBM3E with AMD and Broadcom, signaling renewed confidence in its technological competitiveness. 'If Samsung succeeds in entering Nvidia's HBM supply chain, the oversupply issue could become even more pronounced,' Ryu said. Currently, SK dominates the global HBM market with a 53 percent share, followed by Samsung with 38 percent. With Micron joining the fray, competition is expected to intensify. Samsung shares are also benefiting from expectations of increased HBM revenue, further buoyed by the recent lifting of export restrictions on Nvidia's China-specific AI chip, the H20. With new market avenues opening, Samsung's momentum in the HBM space appears to be strengthening. As the market dynamic shifts, industry insiders are watching whether the HBM sector will transition from a technology-driven race to a price-driven war. Until recently, tight supply allowed suppliers to dictate prices. But as supply loosens, big tech clients like Nvidia and AMD are likely to gain leverage in price negotiations. 'The balance of power is shifting from suppliers to buyers,' said Ryu. 'We may see weaker-than-expected price hikes for the upcoming HBM4 chips.' Investment bank Goldman Sachs also forecast that HBM prices could fall by around 10 percent next year, citing the likely impact of increased competition and capacity. 'HBM has entered a maturing phase,' said an industry source who requested anonymity. 'As supply constraints ease, chip makers will need not only technical excellence but also strong price competitiveness to survive. The real price war is likely to begin in earnest next year.' Against this backdrop, both Samsung and SK are racing to mass-produce HBM4 by the second half of this year. SK was the first chip maker to supply 12-layer HBM4 samples to Nvidia in March. Samsung is expected to follow suit within this month, shipping its samples to both Nvidia and AMD. In an effort to regain lost ground after delays with HBM3E chips, Samsung is utilizing its advanced 1c DRAM technology, which employs a 10-nanometer process, in HBM4, aiming for high precision and yield stability. It is also actively investing in its Pyeongtaek Campus Line 4 (P4) to support volume production. 'Samsung appears to be rebuilding its strategy with a long-term perspective to win back customer trust, rather than focusing on short-term results,' said an anonymous source who is familiar with the matter. 'Though Samsung may be behind SK in HBM development timing, if it can deliver on performance, it still has a strong chance to catch up to its rivals.' SK, meanwhile, is prioritizing stable yields by using the same 1b, the fifth generation of the 10nm process and mass reflow-molded underfill packaging method from HBM3E. It is also deepening collaboration with Taiwan's TSMC to enhance both HBM4 production and advanced packaging capabilities. 'We are accelerating open collaboration with global customers as well as TSMC, not only to develop the highest-performance HBM4 but to reinforce our position as a total AI memory provider,' said Kim Joo-sun, SK hynix president in charge of AI infrastructure.
Time of India
16-07-2025
- Business
- Time of India
US chip policy shift boosts outlook for Samsung, SK Hynix
Seoul: The recent decision by the United States to lift restrictions on Nvidia's AI chip exports to China is expected to significantly benefit South Korean chipmakers Samsung Electronics and SK Hynix , particularly in the high-bandwidth memory (HBM) segment, as reported by The Korea Herald. On Tuesday, US Commerce Secretary Howard Lutnick confirmed that the government has cleared Nvidia to sell its H20 graphics processing units (GPUs) to China. The move is part of broader trade talks with Beijing involving rare earth elements and is aimed at increasing China's dependence on American technology. "We don't sell them our best stuff, not our second-best stuff, not even our third-best". Lutnick added, noting that the H20 is Nvidia's "fourth-best" chip. In April, President Donald Trump had blocked H20 exports to China to limit China's access to advanced US technology. The resulting export freeze left Nvidia with unsold stock, leading to a USD 4.5 billion charge and a USD 2.5 billion drop in quarterly revenue. Now that exports are back on track, demand for HBM chips--which power AI accelerators and high-performance servers by delivering faster data processing than traditional DRAM--is expected to rebound. Samsung and SK Hynix, key HBM suppliers to Nvidia, are likely to see a positive impact. The H20 chip includes both HBM3 and the newer HBM3E memory. While it may not excel at training AI models, it is optimized for inference tasks, an area of AI experiencing rapid growth. Samsung has reportedly been supplying HBM3 for the H20 since last year. However, the earlier export ban had taken a toll, contributing to a 55.9 per cent drop in Samsung's operating profit year-over-year for the second quarter. Meanwhile, SK Hynix, which currently holds the top market share in HBM and was the first to supply HBM3E to Nvidia, stands to gain in the short term from the restored H20 exports. "It's a short-term positive development for the AI GPU and HBM sectors that Nvidia is now able to resume exports to China," said Ryu Hyung-keun of Daishin Securities. "SK Hynix is expected to benefit in the near term from the resumption of H20 shipments."
Time of India
16-07-2025
- Business
- Time of India
US chip policy shift boosts outlook for Samsung, SK hynix
Academy Empower your mind, elevate your skills The recent decision by the United States to lift restrictions on Nvidia 's AI chip exports to China is expected to significantly benefit South Korean chipmakers Samsung Electronics and SK hynix , particularly in the high-bandwidth memory (HBM) segment, as reported by The Korea Tuesday, US Commerce Secretary Howard Lutnick confirmed that the government has cleared Nvidia to sell its H20 graphics processing units (GPUs) to move is part of broader trade talks with Beijing involving rare earth elements and is aimed at increasing China's dependence on American technology."We don't sell them our best stuff, not our second-best stuff, not even our third-best". Lutnick added, noting that the H20 is Nvidia's "fourth-best" April, President Donald Trump had blocked H20 exports to China to limit China's access to advanced US technology. The resulting export freeze left Nvidia with unsold stock, leading to a $4.5 billion charge and a $2.5 billion drop in quarterly that exports are back on track, demand for HBM chips—which power AI accelerators and high-performance servers by delivering faster data processing than traditional DRAM—is expected to rebound. Samsung and SK hynix, key HBM suppliers to Nvidia, are likely to see a positive H20 chip includes both HBM3 and the newer HBM3E memory. While it may not excel at training AI models, it is optimized for inference tasks, an area of AI experiencing rapid has reportedly been supplying HBM3 for the H20 since last year. However, the earlier export ban had taken a toll, contributing to a 55.9% drop in Samsung's operating profit year-over-year for the second SK hynix, which currently holds the top market share in HBM and was the first to supply HBM3E to Nvidia, stands to gain in the short term from the restored H20 exports."It's a short-term positive development for the AI GPU and HBM sectors that Nvidia is now able to resume exports to China," said Ryu Hyung-keun of Daishin Securities. "SK hynix is expected to benefit in the near term from the resumption of H20 shipments."
Yahoo
24-03-2025
- Business
- Yahoo
Meta Offered $800M. This Startup Said No.
FuriosaAI just made a gutsy calland investors should take note. The Seoul-based AI chip startup turned down an $800 million acquisition offer from Meta (NASDAQ:META), choosing to chart its own course instead of getting absorbed by Big Tech. Talks reportedly collapsed not over money, but over how the company would be run post-acquisition. FuriosaAI, founded by June Paik (ex-Samsung, ex-AMD (NASDAQ:AMD)), has been quietly building serious firepower: its second-gen chip, RNGD, uses TSMCs 5nm process and SK Hynixs HBM3 memory to take on Nvidia (NASDAQ:NVDA), Groq, and Cerebras in AI inferencing. The chips already in trials with LG AI Research and Aramcoand it's set to launch later this year. Warning! GuruFocus has detected 3 Warning Signs with NVDA. Rather than cash out, FuriosaAI is now raising around $48 million to fuel its next phase of growthlikely a lead-up to an IPO. It's one of the few Asian startups to catch Metas eye, and it's betting big on staying independent. That decision has real consequences: shares of DSC Investment, a key early backer, dropped over 16% after the Meta deal fell through. Meanwhile, Meta is moving full steam ahead with its $65 billion AI infrastructure push, building its own chips to lessen reliance on Nvidia. But with FuriosaAI staying privatefor nowthe chip wars just got a lot more interesting in Asia. The bigger picture? This is a signal shift. Emerging chipmakers arent just waiting to be boughttheyre gunning for market share. FuriosaAIs refusal could inspire a new wave of homegrown challengers in the AI hardware race, especially across Asia. And for investors watching the next generation of semiconductor disruption unfold, this might be the one to keep on your radar. This article first appeared on GuruFocus.
