Samsung chip Archives - Gizmochina

Samsung’s Q2 Profit Soars 13-fold, driven by Artificial Intelligence and Chip industry

Joane — Thu, 04 Jul 2024 16:07:25 +0000

Samsung Electronics has announced an expected 13-fold increase in its second-quarter profit, a remarkable turnaround compared to the same period last year. The company’s estimated operating profit for Q2 2024 is set to reach 8.8 trillion won ($6.34 billion), up from just 670 billion won in Q2 2023. This marks the highest profit for Samsung since the third quarter of 2022.

A major driver of this profit surge is the improved performance of Samsung’s semiconductor division. This segment has seen a significant recovery, posting an estimated operating profit of 4.6 trillion won in Q2 2024, compared to a loss of 4.36 trillion won in the same period last year. The increased demand for high-end DRAM chips, particularly those used in artificial intelligence (AI) applications, has fueled this growth. Prices for DRAM chips have jumped by 13% to 18%, while NAND Flash chips used for data storage have risen by 15% to 20%.

AI Boom Boosts Chip Demand

The booming AI sector has significantly impacted Samsung’s profits, with a growing need for advanced memory chips like high-bandwidth memory (HBM) solutions used in AI data centers. This trend has led to increased prices and demand for Samsung’s high-end DRAM chips, essential for AI chipsets and data center servers.

Despite the overall profit increase, Samsung’s mobile business has experienced a decline. The estimated Q2 operating profit for this division is 2.2 trillion won, down from 3.04 trillion won a year earlier. The drop is attributed to higher costs for parts and marketing, as well as investments in AI service development. The number of smartphones shipped remains similar to last year, indicating that external factors like increased costs are impacting profits.

Upcoming Product Launches

Samsung is set to launch its latest flagship foldable phones, the Galaxy Z Fold 6 and Galaxy Z Flip 6, along with new mobile accessories on July 10 in Paris. The company is also introducing a new health monitoring ring, aiming to compete with Apple in the high-end market.

Analysts have forecasted Samsung’s Q2 operating profit to be around 8.547 trillion won to 8.8 trillion won. Samsung is expected to release a detailed earnings report at the end of the month. The company’s focus on expanding and diversifying its business divisions, alongside the rising chip prices, suggests a promising future ahead.

Overall, Samsung’s impressive Q2 profit highlights a strong recovery in the chip industry, driven by the surging demand for AI-related memory chips.

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Samsung continues chip production cuts to reduce losses in Q3 2023

Rajesh Regmi — Mon, 02 Oct 2023 12:43:23 +0000

Samsung the world’s largest chipmaker, is set to continue chip production cuts in Q3 2023 to narrow down its chip losses. The company began reducing chip output earlier this year, following the lead of its peers, SK Hynix Inc. and Micron Technology, to resolve a persistent supply glut.

Analysts Kim Dong-won at KB Securities expect that Samsung’s Device Solutions (DS) division, which oversees its chip business, to report losses of around 4 trillion won ($2.96 billion) in Q3, which is lower than the 4.35 trillion won loss recorded in Q2.

This is due to the increased chip production cuts that Samsung has implemented since the second half, with DRAM cuts now at 30% and NAND Flash cuts at 40%, up from 20% and 30%, respectively, in Q1.

Samsung’s DS division reported an operating loss of 4.6 trillion won in Q1, its first financial loss in 14 years. This was mainly due to the high chip inventories amid lower global demand.

However, the analyst believes that Samsung’s production cuts, particularly the 50% cut for NAND Flash, could have a ripple effect and lead to a price uplift for their primary products.

Despite this optimism, some analysts believe that Samsung’s chip performance may still fall short of expectations in the third quarter due to increased depreciation costs.

All in all, Samsung’s efforts to reduce chip production are expected to narrow its chip deficit in Q3, potentially leading to improved chip prices and demand. However, the impact may vary depending on production costs and market dynamics.

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Samsung Electronics Announces $230 Billion Investment in the World’s Largest Chip Factory

Oğuz Çakır — Wed, 15 Mar 2023 15:36:17 +0000

Samsung has announced plans to invest a massive $230 billion in South Korea over the next two decades to build the world’s largest chip factory. The move is aimed at boosting the country’s chip industry and expanding tax breaks and support for high-tech sectors like chips, displays, and batteries. Here are the details…

Samsung Electronics to invest $230 bln through 2042 in South Korea for World’s Largest Chip Factory

As part of this investment, Samsung will add five chip factories that will attract up to 150 materials, parts, and equipment makers, fabless chipmakers, and semiconductor research and development organizations near Seoul. The South Korean government will also invest 25 trillion won over five years for research and development in strategic technologies like artificial intelligence, while providing about 360 billion won to develop chip packaging and about 100 billion won in electricity and water infrastructure this year for industrial complexes.

This investment is in response to other countries taking steps to bolster their domestic chip industries, such as the United States’ CHIPS Act, which offers billions of dollars in subsidies for chipmakers investing in the country. Samsung’s investment plan will strengthen South Korea’s position in the global semiconductor industry, and help the country become a major player in the non-memory chip field. This is important for the country as it seeks to improve supply-chain stability and become self-sufficient in key technologies.

Samsung’s investment plan also includes several of its affiliates, including Samsung Display, Samsung SDI, and Samsung Electro-Mechanics. These companies plan to invest 60.1 trillion won over the next 10 years in regions outside the Seoul metropolitan area to develop chip packaging, displays, and battery technology. This move will help to diversify the country’s technology manufacturing base and expand its reach beyond Seoul.

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Samsung to unveil new & exclusive Galaxy chips during S23 series launch

Sean — Tue, 10 Jan 2023 09:48:14 +0000

Samsung is gearing up to launch the Galaxy S23 series of flagship smartphones. But it appears that the new high end phones won’t be the only thing that the company revealing during the launch event.

According to a new report, the South Korean tech giant is apparently planning on releasing a new chipset that is dedicated for its Galaxy series of smartphones. A recent leak from known tipster Ice Universe had recently revealed the February 1 launch date for the Galaxy S23 series. And now, a fresh tweet from the same tipster revealed that the president of Samsung’s mobile experience business, TM Roh, will be unveiling a “Galaxy dedicated chip” at the upcoming the event.

This is not entirely new information considering that TM Roh had previously hinted at Samsung working on an exclusive chipset for Galaxy phones back in April of last year. The senior official had talked about such a chip in comparison to the Google Tensor chips for the Pixel series of smartphones. As of right now, Exynos series of chips are the company’s proprietary SoCs and are even featured in certain other brands as well. However, the Exynos models are only available in select regions and models.

But as per sources close to the matter, the company is reportedly working on utilizing second or third generation of 3nm GAA manufacturing technology used by Samsung Foundry. In other words, this means that the brand is planning on unveiling a new advanced high end chipset for mobile devices soon. So stick around for more updates regarding this matter.

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Samsung announces fastest ever LPDDR5X DRAM with up to 8.5Gbps speed

Jed John Ikoba — Tue, 18 Oct 2022 13:52:30 +0000

Samsung is close to releasing its LPDDR5X DRAM chips, which have gone through several stages of development. Samsung has now announced that the LPDDR5X DRAM has completed its validation process. The new chip has already achieved an industry milestone of 8.5 Gbps since March 2022.

The LPDDR5X DRAM is a significant improvement of the LPDDR5 and it’s a culmination of a partnership between Samsung and Qualcomm. The Samsung-Qualcomm collaboration certainly fast-tracked the development of the new chip. Its speed surpassed the previous maximum speed for DRAM which was 7,5Gbps.

Although the LPDDR5X technology is not new, it has seen some innovations even with the minimal internal redesign. The LPDDR5X technology is currently used in some smartphones but the new chips expand the utility and performance of the technology. It is a low-power consumption technology that delivers high performance. The LPDDR5X memory will achieve higher speeds with minimal internal redesigning. It is well suited for applications outside smartphones like PCs, servers, automobiles, and more.

Both Samsung and Qualcomm are excited about the completed validation of the LPDDR5X DRAM chip. Daniel Lee, EVP of the Memory Product Planning Team at Samsung, and Ziad Asghar, VP of Product Management at Qualcomm were both upbeat about the development. Samsung says the market availability of the chips was accelerated by more than a year following its collaboration with Qualcomm. There are no fine details yet for the release of the LPDDR5 DRAM commercially, but this could be very close.

Samsung will reportedly commence high-volume production of 3nm chip next year

Jed John Ikoba — Mon, 12 Jul 2021 13:35:49 +0000

Samsung unveiled the 3GAE (3nm Gate-All-Around Early) and 3GAP (3nm Gate-All-Around Plus) nodes in May 2019, promising that chips produced through these new technologies could yield a substantial reduction in power consumption and enhancements in overall performance. A 35% performance jump was projected, in addition to a 50% reduction in power consumption when compared with the existing 7LPP nodes technique.

Together with a raft of other methods, these processes were outlined by the chipmaking arm of Samsung – Samsung Foundry in 2021. It was part of its technological roadmap, with high-volume production of chips through the process scheduled for commencement in 2021. However, several challenges have been encountered in the chipmaking market, with the coronavirus pandemic playing a major role in the shift in expectations and targets.

Samsung Foundry has now made changes to its 3nm process nodes, stating that the first 3GAE chips will be mass-produced within its facilities from next year. It seems, however, that the 3GAE chips have been removed from the company’s roadmap outlined during the Foundry 2021 event, held in China. This could mean that Samsung will be producing the product for internal use by Samsung smartphones only. The successor chips to the 3GAE are the 3GAP models, which could commence high-volume production in Samsung Foundry by 2023. The Samsung Roadmap also provides timelines for several other chip technologies like the 5LPP and 4LPP, which are slated for 2021 and 2022 high-volume production, respectively.

Samsung Foundry is the second-largest smartphone chip-maker after TSMC. It is an independent arm of Samsung and continues to provide critical supplies that have made Samsung sufficiently weather the global chip shortage without significantly affecting its overall outlook. It had been reported previously that Samsung was skipping the 4nm process, with a focus on the 3nm process. While the current chips adorning Samsung’s latest flagship offerings is built on the 5nm-process, the 3nm chips will be smaller, more powerful, and more efficient.

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Samsung planning to site a $10-billion 3nm chip factory in Austin, Texas

Jed John Ikoba — Mon, 25 Jan 2021 17:40:51 +0000

Global tech powerhouse, Samsung is planning to invest over $10 billion to build a new chip factory in Austin, Texas, as it pursues a massive expansion scheme to fill the manufacturing gap in demand for chips, which Samsung’s existing facility is unable to cope with. Some big customers of Samsung are Qualcomm, Intel, and Tesla, among others, and their demand quantum has increased in the past few months.

In addition, the new factory is expected to produce advanced chips like the 3nm within a short period, which would give Samsung some leverage as a global leader in mobile chip fabrication, as it seeks to upend its major competitor TSMC. Samsung got some boost after Qualcomm switched back to Samsung for the new Snapdragon 888, a sharp departure from the Snapdragon 855 and Snapdragon 865 which were both manufactured by TSMC.

The advanced technology and high-end 3nm chips could enhance overall performance by up to 35% performance increase, a massive 50% reduction in power consumption, and a 45% reduction in size, when compared with 7nm chips, according to Samsung.

A total of $116 billion is earmarked for the completion of the factory over the course of its operation as Samsung pursues its goal to become the biggest player in the chip-making segment of the tech ecosystem.

The chip manufacturing industry, last month experienced a huge disequilibrium in the demand-supply balance as most suppliers could not meet the demands of major customers, leading to the temporary closure of some car factories as a result of the absence of important chip components.

Therefore, Samsung’s plans for expansion would serve as a huge boost to the industry. Samsung is a global leader in telecommunications, home electronics, and various segments of the technological spectrum.

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