he Samsung Electronics company states that plans to focus more on producing some higher-end chips powered by artificial intelligence to manage the major
supply demand. Also, the company is now trying to sign a big supply deal in order to relieve the investor’s concerns after Samsung faced a 40% profit fall quarter-on-quarter.
The Samsung stock has experienced a low performance this year, due to the fact that the South Korean company tried to follow its rival’s technology and success. For example, the TSMC company and SK Hynix have recorded impressive Q3 earnings after the AI expansion.
Samsung Executive Vice President Jaejune Kim made a statement about the high-end memory Samsung chips that are used in the AI chips-making process - "While there was a delay in commercialising HBM3E sales as we had flagged earlier, we have made meaningful progress in the product's qualification test process with a major customer,".
"As a result, we expect improved (HBM3E) sales in the fourth quarter and plan to expand sales to multiple customers.", he also said in his statement.
Although the Executive Vice President didn’t reveal its major client, various rumors say that the new Samsung client might be the giant Nvidia, because it controls about 80% of the AI chips market worldwide.
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It seems that the Samsung Electronics chip maker is expected to supply the HBM3E Samsung chips to Nvidia. Artificial intelligence is probably the only positive aspect of the slow chip market, and Samsung has facing recently issues in supplying the high-end semiconductors that are used in the AI chips-making process.
"In the fourth quarter, while memory (chip) demand for mobile and PC may encounter softness, growth in AI will keep demand at robust levels,", the South Korean company said in their statement.
"Against this backdrop, the Company will concentrate on driving sales of High Bandwidth Memory (HBM) and high-density products,", Samsung Electronics added
In the July to September period, Samsung Electronics recorded an operating profit of up to $6.66 billion, compared with $7.5 billion registered in the previous quarter earnings. But the third quarter earnings result has surpassed the company's expectations because, at the beginning of October, Samsung Electronics estimated a revenue of about $6 billion.
Now, the South Korean company is focused on increasing the Samsung chips to its clients in order to keep up with the AI chips market expansion.
Stay tuned for more updates!
By
Eva Robinson
•
October 31, 2024 10:05 AM
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