Samsung predicts profit to hit from weak chip sales while the curbs of the US curbs


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Samsung Electronics reported that weak demand for memory chips is expected to limit the growth of income in the current quarter, with problems with the artificial semicondmences used in artificial intelligence hardware .

The South Korean company says Friday expects that the total memory chip is asking to start fixing the second quarter. These parts fall approximately 2.5 percent of the weak income forecast.

“In the first quarter of 2025… General income growth may be limited due to the semiconductor’s business weakness,” Samsung, the largest memory of the world, as a statement.

Kim Jae-June, Executive Vice-President of the Samsung’s business, later adds: “There are some temporary restrictions on our (high-bandwidth memory) chipping. We expect some effect on our HBM need from the US not just restrictions in the exports of high-end chips for also large clients. “

Forced Samsung after failing to ride ai investment wave. HBM AI chips do not match the capabilities of SK Hynix’s achievements, nor gained approval from NVIDIA, a key customer. Samsung also beat the lazy drum chip cycle because of the great exposure to the commodity chips and increases in Chinese opponents like CXMT.

SK Hynix shares dropped as much as 12 per cent Friday morning while opening markets after breaking Lunar New Year – catching WORRIED that great spending of data centers may have broken, with Depeedek Ai budget model trigger panic in future needs.

Samsung executives tell the analysts on Friday that the company has reduced exposure to combinations of semiconductors, which focuses on the servers higher in AI, where the need “remains stronger”. But its contract contract business remains weak between soft slow demand for chipsphones and pcs.

Investing in memory chips is the same as the level last year, it says. The company reported total capital expenditure on Won53.6tn ($ 37bn) last year, with the majority to go to the chip unit.

Samsung also organizes the team of its engineers To strengthen competing with HBM, but NVIVAIA chief Jensen Huang said this month samsung should “Engineer is a new design” To supply the HBM chips to his company, although he added that “they can do it and they work very much”.

For the first timeSK Hynix hammered by Samsung in the quarterly profit in the fourth quarter, driven by HBM’s sale, which is expected to double this year. Samsung chip reported an operating profit of won2.9tn in October-December quarter, by 26 percent from the previous quarter.

“Samsung lost leadership of HBS and seemed to be at memory of commodity more revealed in Chinese competition,” as Sanjeav Rana research on the CLSA.

“Hynix is ​​more famous because they have this great part of income from HBM need so good,” he added. “Creating Chinese memory making memory increases and can pick up in the coming months… And there are some concerns about that.”



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