Latest news with #HBM3E
Time of India
4 days ago
- 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
4 days ago
- 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."
Korea Herald
4 days ago
- Business
- Korea Herald
US chip thaw boosts outlook for Samsung, SK hynix
Nvidia's resumed China exports expected to drive demand for Korea-made HBM chips Anticipation is growing for a boost to Korean chipmakers Samsung Electronics and SK hynix, as the US reversal of restrictions on Nvidia's AI chip sales to China is expected to revive demand for their high-bandwidth memory, or HBM, chips. On Tuesday, US Commerce Secretary Howard Lutnick confirmed that the government had approved Nvidia's sales of its H20 graphics processing units to China. He explained that the decision was part of broader negotiations with Beijing on rare earth materials and a strategic effort to make China reliant on American technology. 'We don't sell them our best stuff, not our second-best stuff, not even our third-best,' Lutnick said, noting that the H20 is Nvidia's 'fourth-best' chip. US President Donald Trump had previously restricted exports of the H20 chips to China in April, as part of efforts to curb Beijing's access to cutting-edge American technology. 'You want to sell the Chinese enough that their developers get addicted to the American technology stack. That's the thinking,' Lutnick added. The restriction had left Nvidia with unsold inventory, resulting in a $4.5 billion charge and a $2.5 billion hit to its quarterly revenue. With Nvidia now set to resume sales in China, Korean chipmakers are expected to benefit from the renewed demand for HBMs. These critical memory components are used in AI accelerators and high-performance servers, enabling significantly faster data transfer compared to conventional DRAM. Nvidia's H20 chip features fourth-generation HBM3 and the latest fifth-generation HBM3E. While it may lag in training AI models, it performs well in inference — the AI process of generating answers to users — which is currently the fastest-growing segment in the AI chip market. Samsung has reportedly been supplying HBM3 for Nvidia's H20 since last year. However, the US trade restrictions appear to have impacted the company's performance, with its operating profit plunging 55.9 percent on-year in the April-June period. Although Samsung's fifth-generation HBM3E has yet to pass Nvidia's quality certification, the resumption of H20 exports to China is expected to help the company expand HBM shipments. Samsung also stands to benefit from Nvidia's upcoming low-end AI chip for the Chinese market, known as the B40, expected to launch later this year. Unlike the H20, the B40 will be equipped with GDDR7, a next-generation graphics DRAM capable of processing more data at once than conventional DRAM. Samsung was the first in the industry to develop a 12-nanometer, 24-gigabit GDDR7 chip. SK hynix, the global leader in HBM market share and the first company in the world to supply HBM3E to Nvidia, is also expected to see a sales boost. '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, an analyst at Daishin Securities. 'SK hynix is expected to benefit in the near term from the resumption of H20 shipments.' Sohn In-joon, an analyst at Heungkuk Securities, said the export resumption is likely to benefit SK hynix more significantly, but could also offer Samsung an opportunity to pass Nvidia's qualification test for its HBM3E chips amid tight supply conditions. Industry officials are also expressing hope that the latest approval of Nvidia's exports could signal a broader shift in US trade policy, potentially paving the way for a further easing of chip export restrictions to China. 'The reopening of the Chinese market sends a positive signal for the entire industry. It presents a major opportunity by expanding the demand base for semiconductors,' one industry official said.
The Sun
08-07-2025
- Business
- The Sun
Samsung flags Q2 profit slump on US chip curbs
SEOUL: Samsung Electronics yesterday projected a far worse than expected 56% plunge in second-quarter operating profit due to weak AI chip sales, deepening investor concerns over the tech giant's ability to revive its struggling semiconductor business. The world's biggest memory chipmaker blamed the profit miss on US restrictions on advanced AI chips for China, but analysts said the decline was also due to delays in supplying high-bandwidth memory (HBM) chips to key US customer Nvidia . In March, Samsung flagged meaningful progress on its latest HBM 3E 12-layer chips could come as early as June. But yesterday it gave no update on supply to Nvidia, only saying its improved HBM products were undergoing customer evaluation and proceeding with shipments. Key rivals SK Hynix and Micron have benefited from robust demand for memory chips driven by AI growth in the US, while Samsung relies more on China, where sales of advanced chips are restricted by the US and competition with local rivals is growing. 'For Samsung Electronics, the key issue remains regaining competitiveness – everything ultimately comes back to HBM,' said Ryu Young-ho, a senior analyst at NH Investment & Securities. Potential US tariffs also cloud the outlook for Samsung's mainstay chip and phone businesses, pressuring margins. 'It will also be difficult to raise prices immediately due to competition, making it challenging to sustain high margins,' Ryu said. Samsung estimated an operating profit of 4.6 trillion won for the April-June period, versus a 6.2 trillion won LSEG SmartEstimate. That would be its weakest in six quarters, down from 10.4 trillion won in the same period a year earlier and 6.7 trillion won in the preceding quarter. Revenue would likely fall 0.1% to 74 trillion won from a year earlier, the filing showed. Samsung attributed chip profit falls partly to inventory value adjustments, without elaborating. Analysts said unsold HBM chips to Nvidia may have contributed to the large inventory writedowns. They estimated the chip division's operating profit could come in around 500 billion won, down over 90% from a year earlier, while its phone business profit may have improved during the period. Samsung Electronics shares slipped 0.2% against a 1.2% rise in the benchmark KOSPI as of 0341 GMT. It said it plans to buy back 3.9 trillion won (RM12 billion) worth of its shares, part of a 10 trillion won buyback announced last November. Analysts said they expect Samsung's profit to improve gradually, supported by the launch of new phones and growth in sales of HBM chips to non-Nvidia customers. – Reuters
Time of India
08-07-2025
- Business
- Time of India
Samsung flags big miss in Q2 profit, blames US AI chip curbs on China
By Heekyong Yang and Joyce Lee SEOUL: Samsung Electronics on Tuesday projected a far worse than expected 56% plunge in second-quarter operating profit due to weak AI chip sales , deepening investor concerns over the tech giant's ability to revive its struggling semiconductor business . The world's biggest memory chipmaker blamed the profit miss on U.S. restrictions on advanced AI chips for China, but analysts said the decline was also due to delays in supplying high-bandwidth memory (HBM) chips to key U.S. customer Nvidia . In March, Samsung flagged meaningful progress on its latest HBM 3E 12-layer chips could come as early as June. But on Tuesday it gave no update on supply to Nvidia, only saying its improved HBM products were undergoing customer evaluation and proceeding with shipments. Key rivals SK Hynix and Micron have benefited from robust demand for memory chips driven by AI growth in the United States, but Samsung relies more on China, where sales of advanced chips are restricted by the U.S. and competition with local rivals is growing. "For Samsung Electronics, the key issue remains regaining competitiveness ... Everything ultimately comes back to HBM," said Ryu Young-ho, a senior analyst at NH Investment & Securities. Potential U.S. tariffs also cloud the outlook for Samsung's mainstay chip and phone businesses, pressuring margins. "It will also be difficult to raise prices immediately due to competition, making it challenging to sustain high margins," Ryu said. Despite the concerns, Samsung Electronics shares rose 0.4% versus a 1.5% gain in the benchmark KOSPI's as of 0030 GMT. It said it plans to buy back 3.9 trillion won ($2.85 billion) worth of its shares, part of a 10 trillion won buyback announced last November. Analysts said they expect Samsung's profit to improve gradually, supported by the launch of new phones and growth in sales of HBM chips to non-Nvidia customers. Samsung estimated an operating profit of 4.6 trillion won for the April-June period, versus a 6.2 trillion won LSEG SmartEstimate. That would be its weakest in six quarters, down from 10.4 trillion won in the same period a year earlier and 6.7 trillion won in the preceding quarter. "The DS Division recorded a quarter-on-quarter decline in profit due to inventory value adjustments and the impact of U.S. restrictions on advanced AI chips for China," Samsung said in a statement, referring to its Device Solutions division, which houses its chip business. Revenue would likely fall 0.1% to 74 trillion won from a year earlier, the filing showed. Samsung said earnings in its foundry business also fell, driven by sales restrictions and related inventory value adjustments stemming from U.S. export controls on advanced AI chips for China, as well as continued low utilisation rates. It expects the operating loss in its foundry business to narrow in the second half of the year as utilisation improves in line with a gradual recovery in demand. The company plans to release detailed results including a breakdown of earnings for each of its businesses on July 31.
