SEOUL: Samsung Electronics forecast demand for artificial intelligence would hold strong and tighten supply of some high-end chips, joining rivals in benefiting from a solid rebound in the battered global memory chip market. The upbeat outlook from the world's largest memory chip maker sent its shares 1.
SEOUL: Samsung Electronics forecast demand for artificial intelligence would hold strong and tighten supply of some high-end chips, joining rivals in benefiting from a solid rebound in the battered global memory chip market.
"We plan to increase supply of HBM-related chips in 2024 by more than three-fold versus last year," Jaejune Kim, a Samsung vice president in charge of the memory division, said on an earnings call. "As Samsung's technology is advantageous for high-stacking, while SK Hynix has its advantages in the 8-layer, there may be a segmentation where Nvidia gets 12-layer products from Samsung and most 8-layer products from SK Hynix," Kim said.Samsung did not respond immediately to a request for comment on its HBM customers.
The chip division, historically Samsung's cash cow business that used to account for two-thirds of its operating profit, swung to a profit of 1.91 trillion won in the March quarter from a 4.58 trillion won loss a year earlier. It was the first profit since the third quarter of 2022. It shipped about 60 million smartphones during the quarter, in line with a year earlier but retaking its title as the world's top smartphone vendor from Apple, which is suffering a sales decline in China.
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