Latest news with #HBM4
Korea Herald
2 days ago
- Business
- Korea Herald
Diverging prospects: Samsung eyes rebound, SK braces for HBM shakeup
As fears of HBM oversupply mount, intensifying price competition puts pressure on chipmakers, reshaping AI memory landscape As concerns over a potential supply glut in the high-bandwidth memory market for artificial intelligence semiconductors intensify, South Korea's two memory chip giants — Samsung Electronics and SK hynix — are seeing sharply divergent stock performances. According to the Korea Exchange on Tuesday, so far in July, Samsung Electronics' shares have surged 13.38 percent on the country's main bourse, Kospi, outpacing the broader index's 4.53 percent rise. On the contrary, SK hynix's shares have dropped 6.68 percent during the same period. Analysts say growing fears of oversupply and falling prices in the HBM segment, a key component in AI chipsets, are driving foreign investors to offload shares. This is particularly the case for those of SK, since it holds the No. 1 position in the global HBM market. Samsung's entry into the market of sixth-generation HBM chips, known as HBM4, is expected to erode the price premium previously enjoyed by SK hynix with its fifth-generation HBM3E products. 'There are rising concerns in the market about potential oversupply of HBM from this year and onward,' said Ryu Young-ho, a senior analyst at NH Investment & Securities. 'It has triggered increased selling pressure on SK hynix shares.' At the same time, Samsung Electronics' stock — long overshadowed by SK hynix — has begun to recover as the company secured supply deals for both HBM3 and HBM3E with AMD and Broadcom, signaling renewed confidence in its technological competitiveness. 'If Samsung succeeds in entering Nvidia's HBM supply chain, the oversupply issue could become even more pronounced,' Ryu said. Currently, SK dominates the global HBM market with a 53 percent share, followed by Samsung with 38 percent. With Micron joining the fray, competition is expected to intensify. Samsung shares are also benefiting from expectations of increased HBM revenue, further buoyed by the recent lifting of export restrictions on Nvidia's China-specific AI chip, the H20. With new market avenues opening, Samsung's momentum in the HBM space appears to be strengthening. As the market dynamic shifts, industry insiders are watching whether the HBM sector will transition from a technology-driven race to a price-driven war. Until recently, tight supply allowed suppliers to dictate prices. But as supply loosens, big tech clients like Nvidia and AMD are likely to gain leverage in price negotiations. 'The balance of power is shifting from suppliers to buyers,' said Ryu. 'We may see weaker-than-expected price hikes for the upcoming HBM4 chips.' Investment bank Goldman Sachs also forecast that HBM prices could fall by around 10 percent next year, citing the likely impact of increased competition and capacity. 'HBM has entered a maturing phase,' said an industry source who requested anonymity. 'As supply constraints ease, chip makers will need not only technical excellence but also strong price competitiveness to survive. The real price war is likely to begin in earnest next year.' Against this backdrop, both Samsung and SK are racing to mass-produce HBM4 by the second half of this year. SK was the first chip maker to supply 12-layer HBM4 samples to Nvidia in March. Samsung is expected to follow suit within this month, shipping its samples to both Nvidia and AMD. In an effort to regain lost ground after delays with HBM3E chips, Samsung is utilizing its advanced 1c DRAM technology, which employs a 10-nanometer process, in HBM4, aiming for high precision and yield stability. It is also actively investing in its Pyeongtaek Campus Line 4 (P4) to support volume production. 'Samsung appears to be rebuilding its strategy with a long-term perspective to win back customer trust, rather than focusing on short-term results,' said an anonymous source who is familiar with the matter. 'Though Samsung may be behind SK in HBM development timing, if it can deliver on performance, it still has a strong chance to catch up to its rivals.' SK, meanwhile, is prioritizing stable yields by using the same 1b, the fifth generation of the 10nm process and mass reflow-molded underfill packaging method from HBM3E. It is also deepening collaboration with Taiwan's TSMC to enhance both HBM4 production and advanced packaging capabilities. 'We are accelerating open collaboration with global customers as well as TSMC, not only to develop the highest-performance HBM4 but to reinforce our position as a total AI memory provider,' said Kim Joo-sun, SK hynix president in charge of AI infrastructure.
Straits Times
08-07-2025
- Business
- Straits Times
Samsung profit halves on US chip curbs, AI memory delays
Sign up now: Get ST's newsletters delivered to your inbox Samsung Electronics reported preliminary operating profit of 4.6 trillion won (S$4.3 billion) in the June quarter, a roughly 56 per cent drop from a year ago. SEOUL – Samsung Electronics' profit fell for the first time since 2023, hurt by US curbs on China-bound AI chips and hiccups in its plans to sell cutting-edge memory to Nvidia. South Korea's largest company reported preliminary operating profit of 4.6 trillion won (S$4.3 billion) in the June quarter, a roughly 56 per cent drop from a year ago. Analysts on average had projected a 41 per cent decline. Revenue stood at 74 trillion won. One-time inventory-related costs contributed to the drop, and customer evaluation and shipments of its advanced memory products are proceeding, Samsung said in a statement. Operating losses in its contract chipmaking business are expected to narrow in the second half of the year on a gradual recovery in demand, Samsung said. The company will provide a full financial statement with net income and divisional breakdowns later in July. Samsung has been struggling to regain its footing in high-bandwidth memory (HBM) chips, which are critical for powering Nvidia's AI accelerators. The company has yet to secure certification from Nvidia for its most advanced product – the 12-layer HBM3E – creating an unusually long lead time for rival SK Hynix in the highly lucrative space. Meanwhile, US competitor Micron Technology has been rapidly advancing to stake its own claim. Analysts polled by Bloomberg News prior to the preliminary earnings release expected Samsung's chip division to post an operating profit of 2.7 trillion won in the second quarter, up from 1.1 trillion in the prior quarter but still significantly lower than 6.5 trillion won a year earlier. In April, Samsung had signalled a better outlook, saying it shipped enhanced HBM3E samples to major customers and expected that product line to contribute to revenue in the second quarter. The company also said it plans to begin mass production of HBM4 chips in the second half of the year. Top stories Swipe. Select. Stay informed. World 25% on Japan and Malaysia, 40% on Laos: Trump's tariff letters to Asia add pressure for deals by Aug 1 Business US stocks knocked lower by tariff jitters; Musk's political plan hits Tesla World Netanyahu says has nominated Trump for Nobel Peace Prize Singapore Fastest charger to be added to Singapore's EV charging network by Q4 in 2025 Singapore Singapore's second mufti Sheikh Syed Isa Semait dies at age 87 Singapore Fewer marriages in Singapore in 2024; greater marital stability for recent unions Singapore Competition watchdog gives SIA, Malaysia Airlines conditional approval to continue cooperation Singapore Eligible S'poreans to get up to $850 in GSTV cash, up to $450 in MediSave top-ups in August Samsung is fighting to catch up to SK Hynix, which has aggressively positioned itself as Nvidia's primary HBM4 supplier. It shipped the world's first 12-layer HBM4 samples to customers ahead of schedule, followed by Micron in June, while Samsung has had to revise its 12-layer HBM3E design. Samsung secured an order from Advanced Micro Devices, joining Micron as a supplier, according to a June release. But its failure to win early certification for HBM3E chips from Nvidia – the dominant maker of AI-supporting graphics processing units – is hurting its attempts to take significant market share. Bernstein analysts led by Mark Li, who had previously expected Samsung's 12-layer HBM3E would be qualified by Nvidia in the second quarter, trimmed their forecast for Samsung's HBM market share, saying they now expect certification in the third quarter. 'Samsung will gradually narrow the gap vs rivals,' they wrote in a June 23 research note. 'We forecast SK Hynix remains the leader in 2027, but with others catching up and SK Hynix's edge eroding, the shares held by suppliers will be more similarly distributed then than now.' Bernstein estimates SK Hynix holds 57 per cent of the HBM market in 2025, followed by Samsung at 27 per cent and Micron at 16 per cent. BLOOMBERG
Business Times
08-07-2025
- Business
- Business Times
Samsung posts first profit drop since 2023 after AI chip delays
[SEOUL] Samsung Electronics' profit shrank more than expected after encountering hiccups in plans to sell cutting-edge artificial intelligence (AI) memory to Nvidia. South Korea's largest company reported preliminary operating profit of 4.6 trillion won (S$4.3 billion) in the June quarter, a roughly 56 per cent drop from a year ago and its first profit decline in more than a year. Analysts on average had projected a 41 per cent decline. Inventory-related costs contributed to the drop, Samsung said. Revenue stood at 74 trillion won. Samsung will provide a full financial statement with net income and divisional breakdowns later this month. Samsung has been struggling to regain its footing in high-bandwidth memory (HBM) chips, which are critical for powering Nvidia's AI accelerators. The company has yet to secure certification from Nvidia for its most advanced product, the 12-layer HBM3E, creating an unusually long lead time for rival SK Hynix in the highly lucrative space. Meanwhile, US competitor Micron Technology has been rapidly advancing to stake its own claim. Analysts polled by Bloomberg News prior to the preliminary earnings release expected Samsung's chip division to post an operating profit of 2.7 trillion won in the second quarter, up from 1.1 trillion in the prior quarter but still significantly lower than 6.5 trillion won a year earlier. In April, Samsung signalled a better outlook, saying it shipped enhanced HBM3E samples to major customers and expected that product line to contribute to revenue in the second quarter. The company also said it plans to begin mass production of HBM4 chips in the second half of the year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Samsung is fighting to catch up to SK Hynix, which has aggressively positioned itself as Nvidia's primary HBM4 supplier. It shipped the world's first 12-layer HBM4 samples to customers ahead of schedule, followed by Micron in June, while Samsung has had to revise its 12-layer HBM3E design. Samsung secured an order from Advanced Micro Devices, joining Micron as a supplier, according to a June release. But its failure to win early certification for HBM3E chips from Nvidia – the dominant maker of AI-supporting graphics processing units – is hurting its attempts to take significant market share. Bernstein analysts led by Mark Li, who had previously expected Samsung's 12-layer HBM3E would be qualified by Nvidia in the second quarter, trimmed their forecast for Samsung's HBM market share, saying they now expect certification in the third quarter. 'Samsung will gradually narrow the gap vs rivals,' they wrote in a Jun 23 research note. 'We forecast SK Hynix remains the leader in 2027, but with others catching up and SK Hynix's edge eroding, the shares held by suppliers will be more similarly distributed than now.' Bernstein estimates SK Hynix holds 57 per cent of the HBM market in 2025, followed by Samsung at 27 per cent and Micron at 16 per cent. At its annual shareholder meeting in March, Samsung vowed to strengthen its position in the HBM market this year, responding to concerns over its underperformance in AI. Jun Young-hyun, head of Samsung's chip business, said that Samsung's failure to secure an early lead in the HBM market contributed to it lagging behind rival SK Hynix and pledged not to repeat the mistake with HBM4. The next-generation memory is expected to be used in Nvidia's Rubin GPU architecture. 'While uncertainties remain around the timeline for quality certification, we see no indication of a strategy shift and believe the company is on track for a 3Q2025 market launch,' Daishin Securities analyst Ryu Hyung-keun wrote in a recent research report. BLOOMBERG
Mint
07-07-2025
- Business
- Mint
Samsung Profit Halves on US Chip Curbs, AI Memory Delays
Samsung Electronics Co.'s profit fell for the first time since 2023, hurt by US curbs on China-bound AI chips and hiccups in its plans to sell cutting-edge memory to Nvidia Corp. South Korea's largest company reported preliminary operating profit of 4.6 trillion won in the June quarter, a roughly 56% drop from a year ago. Analysts on average had projected a 41% decline. Revenue stood at 74 trillion won. One-time inventory-related costs contributed to the drop, and customer evaluation and shipments of its advanced memory products are proceeding, Samsung said in a statement. Operating losses in its contract chipmaking business are expected to narrow in the second half of the year on a gradual recovery in demand, Samsung said. The company will provide a full financial statement with net income and divisional breakdowns later this month. Samsung has been struggling to regain its footing in high-bandwidth memory chips, which are critical for powering Nvidia's AI accelerators. The company has yet to secure certification from Nvidia for its most advanced product — the 12-layer HBM3E — creating an unusually long lead time for rival SK Hynix Inc. in the highly lucrative space. Meanwhile, US competitor Micron Technology Inc. has been rapidly advancing to stake its own claim. Analysts polled by Bloomberg News prior to the preliminary earnings release expected Samsung's chip division to post an operating profit of 2.7 trillion won in the second quarter, up from 1.1 trillion in the prior quarter but still significantly lower than 6.5 trillion won a year earlier. In April, Samsung signaled a better outlook, saying it shipped enhanced HBM3E samples to major customers and expected that product line to contribute to revenue in the second quarter. The company also said it plans to begin mass production of HBM4 chips in the second half of the year. Samsung is fighting to catch up to SK Hynix, which has aggressively positioned itself as Nvidia's primary HBM4 supplier. It shipped the world's first 12-layer HBM4 samples to customers ahead of schedule, followed by Micron in June, while Samsung has had to revise its 12-layer HBM3E design. Samsung secured an order from Advanced Micro Devices Inc., joining Micron as a supplier, according to a June release. But its failure to win early certification for HBM3E chips from Nvidia — the dominant maker of AI-supporting graphics processing units — is hurting its attempts to take significant market share. Bernstein analysts led by Mark Li, who had previously expected Samsung's 12-layer HBM3E would be qualified by Nvidia in the second quarter, trimmed their forecast for Samsung's HBM market share, saying they now expect certification in the third quarter. 'Samsung will gradually narrow the gap vs rivals,' they wrote in a June 23 research note. 'We forecast SK Hynix remains the leader in 2027, but with others catching up and SK Hynix's edge eroding, the shares held by suppliers will be more similarly distributed then than now.' Bernstein estimates SK Hynix holds 57% of the HBM market in 2025, followed by Samsung at 27% and Micron at 16%. At its annual shareholder meeting in March, Samsung vowed to strengthen its position in the HBM market this year, responding to concerns over its underperformance in AI. Jun Young-hyun, head of Samsung's chip business, said that Samsung's failure to secure an early lead in the HBM market contributed to it lagging behind rival SK Hynix and pledged not to repeat the mistake with HBM4. The next-generation memory is expected to be used in Nvidia's Rubin GPU architecture. 'While uncertainties remain around the time line for quality certification, we see no indication of a strategy shift and believe the company is on track for a 3Q2025 market launch,' Daishin Securities Co. analyst Ryu Hyung-keun wrote in a recent research report. With assistance from Shinhye Kang. This article was generated from an automated news agency feed without modifications to text.
Korea Herald
06-07-2025
- Business
- Korea Herald
Samsung's weight in Kospi hits 9-year low on chip setbacks
Despite Korea's main bourse the Kospi having recently reclaimed the level of 3,000 points, the weighting of market bellwether Samsung Electronics' market capitalization in the benchmark index fell to its lowest level in over nine years, data showed Sunday. The tech giant's common shares accounted for 14.53 percent of the main board's total market capitalization last month, according to the Korea Financial Investment Association. Including preferred shares, the figure stood at 16.17 percent. The common stock ratio matched its lowest figure since March 2016, while the combined figure was the lowest since a month before that, when it had reached 15.83 percent, data showed. The market cap ratio reflects the average proportion of Samsung's closing market value against the total market capitalization of all listed stocks on the Kospi, measured daily over a month. Market watchers attribute the decline in Samsung's market dominance to continued underperformance in its chip division, the device solutions unit. Losses in its foundry and nonmemory operations have dragged down earnings, while the firm's competitiveness in high-bandwidth memory technology has yet to be fully proven. As a result, when the Kospi jumped 13.86 percent last month, buoyed by institutional and foreign buying, the tech giant's shares rose only 6.41 percent. The tech giant's market cap stood at 353.99 trillion won ($259.8 billion) as of June 30. While Samsung is scheduled to release its second-quarter earnings guidance on Tuesday, market watchers expect the company to have reached the bottom of its earnings in the second quarter, with performance expected to improve from the third quarter as revenue from HBM increases. In the second half, Samsung plans to maintain its NAND production cutbacks while focusing on high-value products such as enterprise solid-state drives. In the high-bandwidth memory segment, the company will accelerate supply discussions for its 12-layer fifth-generation HBM chips -- HBM3E -- with Nvidia, and is also targeting mass production of its sixth-generation HBM -- HBM4 -- later this year. In the foundry business, Samsung will ramp up its efforts to commercialize its 2-nanometer node for chip production by year-end. The division that focuses on system-on-a-chip products will also prepare the launch of the in-house Exynos 2500 for the upcoming Galaxy Z Flip 7, with plans to mass-produce the next-generation Exynos 2600 later this year in a bid to narrow operating losses. 'HBM sales to major clients like AMD are expected to rise and losses in the nonmemory segment are likely to narrow,' said Park Yu-ak, an analyst at Kiwoom Securities. 'Stock momentum could strengthen in the third quarter as Samsung begins supplying HBM3E to Nvidia and demonstrates competitive strength in HBM4 technology with new foundry clients.'
