Unlock free Digest editor
Roula Khalaf, editor of FT, chooses her favorite story in this weekly newsletter.
Samsung Electronics reported that poor demand for its memory chips is expected to limit the growth of earnings in the current quarter, with his problems with the complex American limitations to supply advanced semiconductors used in artificial intelligence hardware.
The South Korean company announced on Friday that she expects the overall demand for memory to start recovering in the second quarter. Its shares fell about 2.5 percent on disappointment due to poor prognosis of earnings.
“In the first quarter of 2025. The total improvement of earnings can be limited because of the weakness of the semiconductor’s business,” said Samsung, the world’s largest memorial chip producer, he said in a statement.
Kim Jae-June, Executive Vice President Samsung’s memory business, later added: “There will be temporary restrictions on ours [high-bandwidth memory] Selling chips in the first quarter. We expect a certain impact on our HBM demand than not only US limitations on the export of top chips, but also a shift of demand for improved chips by the main clients. “
Samsung was under pressure after failing to drive an investment wave AI. His HBM AI chips did not match the possibilities of those made by SK Hynix, nor did he receive approval from Nvidia, a key customer. Samsung is also a strongly affected by the controversial cycle of DRAM Chip due to greater exposure to trade chips and increasing Chinese rivals like CXMT.
SK Hynix shares have fallen on Friday morning as much as 12 percent, such as markets re -opened after a break for the new year of lunar year – they make up for concern This great consumption at data centers may have reached its peak, Deepseek’s budget AI model Starting panic due to future demand.
Samsung managers said on Friday analysts that the company reduced exposure to conventional memory semiconductors, focusing more on chips with higher margins used in AI servers, where demand “remains strong”. But his job of a contract of contract remained weak due to soft demand for chips used in smartphones and computers.
Investing in memory chips would be similar to last year’s level, it is said. Last year, the company reported the total capital consumption of Won53.6tn ($ 37 billion), with the rally going to his chip unit.
Samsung reorganized his teammate team to strengthen his competitiveness of HBM, but chief Nvidia Jensen Huang said this month that Samsung had to “Engineer New Design” To supply HBM chips to his company, though he added that “I can do it and do it very quickly.”
For the first timeSK Hynix overcame Samsung with a three -month profit in the fourth quarter, guided by HBM’s sale, which he expects to double this year. Samsung’s Chip Division reported an operational profit of 2.9 N Won in the quarter of October and December, which is 26 percent falling compared to the previous quarter.
“Samsung has lost its leadership at HBMS, it seems that even in a brand memory they are more exposed to the Chinese competition,” said Sanjee’s wound, head of Korean capital research at CLSA.
“Hynix was more resistant because they have this large part of the HBM demand revenue, which is really good,” he added. “Chinese production of commodity memory is growing and could be picked up in the coming months. . . And there are some concerns about it. “
