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Business Times
7 days ago
- Automotive
- Business Times
LG Electronics shares jump on report of AI chip gear development
[HONG KONG] LG Electronics shares advanced in Seoul after a local media report that the company is developing cutting-edge tools for making the memory chips that work alongside artificial intelligence (AI) processors designed by Nvidia and others. The South Korean company is targeting mass production of hybrid bonders for high-bandwidth memory (HBM) chips in 2028, Seoul Economic Daily reported, citing unidentified sources. LG Electronics said that it is conducting technical research on hybrid bonders for HBM, but the specific timing of mass production has not been confirmed. South Korea is home to SK Hynix, a key supplier of HBM, which comprises stacks of Dram chips. Hybrid bonders are critical to the manufacture of HBM, enabling thinner stacks by directly bonding the electrodes of adjacent layers. Other South Korean companies already making hybrid bonding equipment include Hanmi Semiconductor, Samsung Electronics' Semes and Hanwha Vision's Hanwha Semitech unit. Hanmi Semiconductor's shares slid as much as 6.5 per cent on Monday (Jul 14) while Hanwha Vision's fell 4.7 per cent and Samsung Electronics' dipped 1.3 per cent. 'The entry barrier for the bonder market is quite steep, and the real edge lies with those who have been mastering the craft for years,' said Greg Roh, an analyst at Hyundai Motor Securities. 'It makes sense to explore new business while the market is growing, but with strong players already in the game, it will require validation.' The company could also face competition from abroad, with Bloomberg Intelligence analyst Sean Chen noting Hong Kong-listed ASMPT and the Netherlands' BE Semiconductor Industries as potential rivals in hybrid bonders. 'LG Electronics could face earnings pressure with rising R&D and capex, while sales contribution is likely to be limited to 2030,' he wrote in a report. BLOOMBERG
The Hindu
08-07-2025
- Business
- The Hindu
Samsung flags big miss in second-quarter profit, citing U.S. AI chip curbs on China
Samsung Electronics on Tuesday projected a 56% drop in second-quarter operating profit from a year earlier, far worse than analysts expected as its sales of artificial intelligence chips slowed in the United States and China. The world's largest memory chipmaker blamed the profit miss on U.S. restrictions on advanced AI chips for China, but analysts said the earnings slump was also due to delays in supplying chips to key U.S. customer Nvidia. Samsung said in a statement on Tuesday that its improved high-bandwidth memory (HBM) products were undergoing customer evaluation and proceeding with shipments, without elaborating further. "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. 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. The earnings miss will fuel investor doubts about Samsung's fundamentals, although its earnings are expected to recover gradually in the third quarter helped by rising sales of HBM chips to non-Nvidia customers and new phone launches, said Greg Roh, head of research at Hyundai Motor Securities. "The worse-than-expected profit will be negative for investor sentiment," he said. 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. Last year, the U.S. ordered Taiwan Semiconductor Manufacturing Co to halt shipments of advanced chips to Chinese customers that are often used in AI applications, Reuters reported. Samsung said 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 is expected to release detailed results including a breakdown of earnings for each of its businesses in late July.
CNA
08-07-2025
- Business
- CNA
Samsung flags big miss in Q2 profit, citing US AI chip curbs on China
SEOUL: Samsung Electronics on Tuesday (Jul 8) projected a 56 per cent drop in second-quarter operating profit from a year earlier, far worse than analysts expected as its sales of artificial intelligence chips slowed in the United States and China. The world's largest memory chipmaker blamed the profit miss on US restrictions on advanced AI chips for China, but analysts said the earnings slump was also due to delays in supplying chips to key US customer Nvidia. Samsung said in a statement on Tuesday that its improved high-bandwidth memory (HBM) products were undergoing customer evaluation and proceeding with shipments, without elaborating further. "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. 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 per cent to 74 trillion won from a year earlier, the filing showed. The earnings miss will fuel investor doubts about Samsung's fundamentals, although its earnings are expected to recover gradually in the third quarter helped by rising sales of HBM chips to non-Nvidia customers and new phone launches, said Greg Roh, head of research at Hyundai Motor Securities. "The worse-than-expected profit will be negative for investor sentiment," he said. Samsung said earnings in its foundry business also fell, driven by sales restrictions and related inventory value adjustments stemming from US export controls on advanced AI chips for China, as well as continued low utilisation rates. Last year, the US ordered TSMC to halt shipments of advanced chips to Chinese customers that are often used in AI applications, Reuters reported. Samsung said 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.
Time of India
14-05-2025
- Automotive
- Time of India
Samsung Electronics to buy German cooling system maker FlaktGroup for $1.7 billion
South Korea's Samsung Electronics on Wednesday said it has agreed to buy FlaktGroup, a German maker of air conditioning and heating systems, for 1.5 billion euros ($1.68 billion) from private equity group Triton. Samsung, through its biggest acquisition in eight years, said it aims to tap demand for data centres for artificial intelligence projects, which require stable cooling. The data centre segment has a high barrier to entry requiring global supply experience and the ability to present optimal designs and solutions, Samsung said in a statement. It expects the FlaktGroup deal to close within this year, it said. Shares in the consumer electronics and semiconductor maker inched up 0.7% largely in line with the benchmark KOSPI. Samsung, led by Chairman Jay Y. Lee, at a shareholder meeting in March said it was looking for deals to drive growth after largely missing out on an AI chip boom. In contrast, compatriot SK Hynix supplies advanced high bandwidth memory (HBM) chips to AI leader Nvidia. Investors expecting bigger deals involving Samsung's cash cow chip business might feel underwhelmed by the FlaktGroup announcement, analysts said. "This acquisition is more about reinforcing its consumer electronics and home appliance businesses, so it is not the game-changing deal the market had been hoping for," said Greg Roh, head of research at Hyundai Motor Securities. Samsung's appliance business also makes commercial cooling and heating systems. "It feels like the company is playing it safe rather than making bold bets," Roh said. Samsung has shunned major acquisitions since its $8 billion purchase of car electronics maker Harman International Industries in 2017. This month, Harman agreed to buy the audio business of U.S. firm Masimo for $350 million. Consumer audio is a new growth engine, Samsung has said, alongside cooling and heating systems, medical and robotics. In December, Samsung became the largest shareholder of South Korea's Rainbow Robotics with the purchase of an additional 267 billion won ($189.03 million) stake. ($1 = 0.8937 euros) ($1 = 1,412.5000 won)
Time of India
14-05-2025
- Automotive
- Time of India
Samsung electronics to buy German cooling system maker FlaktGroup for $1.7 billion
South Korea's Samsung Electronics on Wednesday said it has agreed to buy FlaktGroup, a German maker of air conditioning and heating systems, for 1.5 billion euros ($1.68 billion) from private equity group Triton. Samsung, through its biggest acquisition in eight years, said it aims to tap demand for data centres for artificial intelligence projects, which require stable cooling. The data centre segment has a high barrier to entry requiring global supply experience and the ability to present optimal designs and solutions, Samsung said in a statement. It expects the FlaktGroup deal to close within this year, it said. Shares in the consumer electronics and semiconductor maker inched up 0.7% largely in line with the benchmark KOSPI. Samsung, led by Chairman Jay Y. Lee, at a shareholder meeting in March said it was looking for deals to drive growth after largely missing out on an AI chip boom. In contrast, compatriot SK Hynix supplies advanced high bandwidth memory (HBM) chips to AI leader Nvidia. Investors expecting bigger deals involving Samsung's cash cow chip business might feel underwhelmed by the FlaktGroup announcement, analysts said. "This acquisition is more about reinforcing its consumer electronics and home appliance businesses, so it is not the game-changing deal the market had been hoping for," said Greg Roh, head of research at Hyundai Motor Securities. Samsung's appliance business also makes commercial cooling and heating systems. "It feels like the company is playing it safe rather than making bold bets," Roh said. Samsung has shunned major acquisitions since its $8 billion purchase of car electronics maker Harman International Industries in 2017. This month, Harman agreed to buy the audio business of U.S. firm Masimo for $350 million. Consumer audio is a new growth engine, Samsung has said, alongside cooling and heating systems, medical and robotics. In December, Samsung became the largest shareholder of South Korea's Rainbow Robotics with the purchase of an additional 267 billion won ($189.03 million) stake. ($1 = 0.8937 euros) ($1 = 1,412.5000 won)
