Latest news with #HeekyongYang
Time of India
01-08-2025
- Automotive
- Time of India
Samsung says tariff agreement reduces uncertainty, expects boost from Tesla deal
By Heekyong Yang, Hyunjoo Jin and Joyce Lee SEOUL: Samsung Electronics said a trade deal between South Korea and Washington will help to alleviate business uncertainty, as the technology giant forecast more major chip orders after signing a $16.5 billion deal with Elon Musk's Tesla . U.S. President Donald Trump said the U.S. will charge a 15% tariff on imports from South Korea as part of the deal that eases, for now, tension with a top-10 trading partner and key Asian ally. Imports from South Korea, a powerhouse exporter of computer chips, cars and steel, had faced a 25% rate. The tariff deal comes days after Tesla said it had signed a deal to source chips from Samsung , a move that analysts said could help the tech giant's struggling contract business. "Building on this milestone, we anticipate securing additional orders from large customers," Samsung Vice President Noh Mi-jung said on an earnings call, referring to its struggling contract chipmaking business. Samsung's new U.S. semiconductor factory in Texas, which is expected to make chips for Tesla, is on track to begin production in 2026, she said. "The key to the Tesla order is how much Samsung would be able to address production yield issues for its advanced 2 nanometer chips," said Greg Roh, head of research at Hyundai Motor Securities. The Texas project is central to Samsung Chairman Jay Y. Lee's strategy of expanding beyond its bread-and-butter memory chip business into high-end contract chip manufacturing , which is dominated by Taiwan's TSMC. Noh's comments came after the company posted 4.7 trillion won ($3.37 billion) in operating profit for the April-June period, its weakest earnings in six quarters. That was roughly in line with an earlier estimate that had disappointed investors. The South Korean tech giant forecast a gradual second-half recovery for its overall business, without providing further details. Second-quarter operating profit at its chip division plunged 94% from a year earlier, it said, hurt by delays in supplying the latest AI chips to Nvidia and U.S. export curbs on advanced semiconductor sales to China. FOCUS ON AI CHIPS Prolonged weakness in Samsung's performance has deepened investor concerns over the South Korean company's ability to catch up with smaller rivals like SK Hynix in developing high-bandwidth memory (HBM) chips used in AI data centres and sold to customers including Nvidia. Last October, Samsung said it was making progress on a major deal to supply HBM3E chips to an unidentified customer that analysts said was Nvidia. Samsung on Tuesday did not give an update to the plan, while warning that the supply of HBM3E chips has been growing faster than demand, which would affect pricing. The tech giant said it has also provided samples of its next-generation HBM4 chips to customers, with a plan to supply them next year. Customers for this chip are also expected to include Nvidia, analysts said. Samsung said on Thursday it expected the industry environment would improve in the second half of the year, driven by AI chip demand due to continued investments by major cloud service providers . Meta Platforms and Microsoft on Wednesday pointed to strong AI chip demand and major investments in data centres in their earnings announcements. Samsung said there were also some concerns about slowing global growth due to an uncertain trade environment and geopolitical risks. "We believe that the uncertainty has been reduced through the conclusion of negotiations between the United States and South Korea," Samsung Chief Financial Officer Park Soon-cheol said after Trump announced the trade deal. Park said Samsung was closely monitoring a U.S. national security probe into imports of semiconductors and electronics such as smartphones, tablets and PCs, which he said could have a significant impact on its businesses. Samsung's second-quarter revenue rose 0.7% to 74.6 trillion won, in line with its earlier estimate of 74 trillion won. Its chip division posted a profit of 400 billion won during the quarter, down from 6.5 trillion won a year earlier, marking the first time in six quarters the figure has dropped below the 1 trillion won mark. Samsung said in a statement inventory value adjustments to memory chips and one-off costs from the impact of U.S. export restrictions on sales to China on its contract chipmaking business lowered the division's profit. Samsung said smartphone demand, which had rebounded in the first half thanks to stockpiling ahead of U.S. tariffs and China subsidies, is expected to see slowing growth in the second half. For TVs, Samsung expected demand to slightly decline due to inflation and economic uncertainty in the second half from a year earlier. Shares of Samsung were down 1.8% in early afternoon trade, underperforming the benchmark KOSPI index, which was 0.5% lower.
Time of India
31-07-2025
- Business
- Time of India
Samsung predicts gradual second-half recovery after Q2 chip profits plunge 94%
By Heekyong Yang, Joyce Lee and Hyunjoo Jin SEOUL : Samsung Electronics forecast a gradual second-half recovery for its chips business after second-quarter operating profit at the division plunged 94% from a year earlier due to shipment delays and U.S. export curbs on advanced semiconductor sales to China. The South Korean tech giant said on Thursday it expected the industry environment would improve in the second half, driven by artificial intelligence demand due to continued investments by major cloud service providers. But hours after U.S. President Donald Trump announced he would place 15% tariffs on South Korean goods, Samsung added there were concerns about slowing global growth due to an uncertain trade environment and geopolitical risks. The world's largest memory chip maker posted 4.7 trillion won ($3.37 billion) in operating profit for the April-June period, its weakest in six quarters and roughly in line with an earlier estimate that had disappointed investors. Its revenue rose 0.7% to 74.6 trillion won, in line with its earlier estimate of 74 trillion won. Samsung's chip division posted a profit of 400 billion won during the quarter, down from 6.5 trillion won a year earlier, marking the first time in six quarters that the figure has dropped below the 1 trillion won mark. Samsung said in a statement that inventory value adjustments to memory chips and one-off costs from the impact of U.S. export restrictions on sales to China on its contract chipmaking business lowered the division's profit. Prolonged weakness in its financial performance has deepened investor concerns over the South Korean tech giant's ability to catch up with smaller rivals in developing high-bandwidth memory chips sold to customers including Nvidia and used in AI data centres. But Samsung reported earnings just days after Tesla said it had signed a $16.5 billion deal to source chips from the tech giant, a move that could bolster the South Korean company's struggling foundry business that makes chips on contract. Major tech companies Meta Platforms and Microsoft on Wednesday pointed to strong AI chip demand and major investments in data centres in their earnings announcements. Shares of Samsung were up 0.7% in the morning trade, in line with the benchmark KOSPI's 0.7% rise.
Yahoo
30-07-2025
- Automotive
- Yahoo
Exclusive-Tesla signs $4.3 billion LGES battery deal, source says, reducing China reliance
By Heekyong Yang and Hyunjoo Jin SEOUL (Reuters) -South Korea's LG Energy Solution (LGES) has signed a $4.3 billion deal to supply Tesla with energy storage system batteries, said a person familiar with the matter, as the U.S. company looks to reduce reliance on Chinese imports due to tariffs. The lithium iron phosphate (LFP) batteries will be supplied from LGES's U.S. factory in Michigan, the person said on condition of anonymity because the details were not public. LGES announced earlier on Wednesday that it had signed a $4.3 billion contract to supply LFP batteries over three years globally, without identifying the customer or saying if they would be used in vehicles or energy storage systems. The South Korean company said last week it would try to offset sluggish electric vehicle demand by increasing sales of storage batteries thanks to a global surge in demand for power driven by data centres to train artificial intelligence. "In accordance with our agreement, we are unable to disclose the customer's identity due to confidentiality obligations," LGES told Reuters. Tesla did not immediately respond to a request for comment. Tesla Chief Financial Officer Vaibhav Taneja said in April that U.S. tariffs had an "outsized" impact on its energy business, since it sources LFP batteries from China. "We will also be working on securing additional supply chain from non-China-based suppliers, but it will take time," he said. Tesla this week also announced a $16.5 billion deal to buy chips from Samsung Electronics' factory in Texas as South Korean companies expand their U.S. presence to meet local demand. Three South Korean cabinet-level officials met U.S. Commerce Secretary Howard Lutnick in Washington in a push to close a trade deal ahead of an August 1 deadline for 25% tariffs on U.S. imports from South Korea to kick in, Seoul said on Wednesday. US PRODUCTION LGES is one of the few U.S. producers of LFP batteries, a battery chemistry long dominated by Chinese rivals that have little presence in the U.S. market. It started production of LFP batteries at its Michigan factory in May. The company said it was considering converting some electric vehicle battery production lines in the United States to cater to energy storage systems in response to slowing EV demand. LGES said the contract would last from August 2027 to July 2030 and included an option to extend the deal period by up to seven years and to increase supply volumes depending on discussions with its customer. "Other players, including South Korean firms like Samsung SDI and SK On, have yet to enter the U.S. LFP market, allowing LGES to enjoy a first-mover advantage," said Cho Hyun-ryul, a senior analyst at Samsung Securities. "While rivals have announced plans, LGES remains the only one actively producing at scale." Tesla's energy storage and generation business accounts for just over 10% of its revenue but it has been a bright spot for the company as it struggles with slowing car sales and upcoming cuts to U.S. government support for EVs. "Energy is growing really well despite headwinds from tariffs and various supply chain challenges," Tesla CEO Elon Musk said on an earnings call last week. "I think not that many people appreciate just how gigantic the scale of battery demand is." Tesla has said its first LFP cell manufacturing facility will be online by the end of the year, but the in-house factory in Nevada will likely account for a small portion of its demand. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
24-07-2025
- Business
- Time of India
Nvidia supplier SK Hynix plans to boost spending after record Q2 profit
By Heekyong Yang and Joyce Lee SEOUL : SK Hynix flagged plans to boost spending this year after posting on Thursday a record quarterly profit , as the Nvidia supplier seeks to alleviate investor concerns about slowing growth for artificial intelligence chipsets . The South Korean chipmaker said demand growth would be driven by new model launches by customers and that it was on track to double high-bandwidth memory (HBM) chip sales for the full year compared to 2024. Its shares climbed more than 3% in early trade, compared to the 0.8% rise in the benchmark South Korean KOSPI index Hynix did not quantify its new investment plan for 2025. Ryu Young-ho, a senior analyst at NH Investment & Securities, said its proactive response to customer demand for next year appeared to reflect its confidence, as it faces major competition from Samsung Electronics. At an earnings conference, SK Hynix also said it was in talks with a major customer regarding sales next year which are "proceeding as planned". It did not elaborate. In March, SK Hynix said it planned to finalise sales with customers for 2026 within the first half of this year. "SK Hynix foresees that increasing competition among big tech companies to enhance inference of AI models would lead to higher demand for high-performance and high-capacity memory products," it said in a statement. Chaotic U.S. policy and turbulence over tariffs have overshadowed the outlook for many companies, and SK Hynix said its earnings were helped by demand from customers to increase inventory ahead of potential tariffs. Earlier this month, U.S. President Donald Trump threatened to soon introduce tariffs on semiconductors. SK Hynix said in April that the proportion of its exports to the United States was not high, but analysts said the company could face pricing pressure from customers squeezed by U.S. tariffs. A much-anticipated meeting between U.S. and South Korean officials scheduled for Friday to discuss tariffs was cancelled. Hopes for a deal had risen after Japan and the United States reached a deal on tariffs this week. Hynix reported a 9.2 trillion won ($6.69 billion) operating profit for the April-June period, up 69% from 5.5 trillion won a year earlier. That compared with a 9.0 trillion won average forecast by LSEG SmartEstimate, which is weighted toward analysts who are more consistently accurate. Revenue rose 35% to 22.2 trillion won during the quarter. HYNIX VS SAMSUNG Its profit is double the quarterly operating profit expected by crosstown rival Samsung Electronics, which this month projected a worse-than-expected 56% plunge in second-quarter operating profit due to weak AI chip sales. SK Hynix overtook Samsung Electronics as the world's top memory chipmaker in the first quarter due to its leadership in HBM chips, a crucial component of AI chipsets designed by the likes of Nvidia that assist the processing of vast amounts of data to train AI models. After posting a series of record profits boosted by strong AI demand, SK Hynix is bracing for potential U.S. tariffs and rising competition from rivals in supplying advanced chips to Nvidia, analysts say. Last Thursday, SK Hynix saw its shares close about 9% lower after Goldman Sachs downgraded the stock to "neutral", expecting HBM prices would decline for the first time next year. Shares of SK Hynix are up 54.7% so far this year, outperforming the KOSPI's 32.7% rise.
The Star
12-07-2025
- Health
- The Star
South Korean medical students to return to school, urge education reforms
FILE PHOTO: A doctor holds a slogan in a protest against a plan to admit more students to medical school, in front of the Presidential Office in Seoul, South Korea, February 22, 2024. REUTERS/Kim Soo-Hyeon/File Photo SEOUL (Reuters) -South Korean medical students who walked out of school last year in protest at a government plan to increase medical school admissions said on Saturday that they would return to campus, calling on authorities to normalize academic schedules. The Korean Medical Association, the main lobby group for doctors, in a statement urged the government to take steps to restore the academic calendar and improve training conditions. 'We will place our trust in the government and parliament and commit to returning to school to help normalize medical education and the healthcare system,' the KMA said in the statement, issued jointly with parliament's education committee and lobby groups representing medical students. A specific timeline for the return was not provided. Thousands of medical students walked out of school in early 2024 in opposition to a plan by the previous administration to add thousands of new spots at medical schools. The trainee doctors had argued that the planned rise in admissions would lower the quality of medical education. They said that rather than just an increase in numbers of students, more reform was needed to attract doctors into essential care such as emergency or pediatrics. The KMA statement called on the president and the government to form a task force to address long-term reforms in medical education and training and to ensure the participation of all stakeholders, including students. (Reporting by Heekyong Yang, Editing by William Maclean)
