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Samsung’s Profit Slide Slows in Sign of a Chip Market Bottom

After stopping losses at its chip division, Samsung Electronics Co. recorded a more gradual decline in quarterly profit, raising the possibility that the worldwide semiconductor sector had turned into a downward spiral.

A 78-cent reduction in operating profits was better than expected, according to some investors, and this helped Samsung’s shares rise as high as 4.4%, which is the biggest in more than a month. The biggest corporation in South Korea, along with its smaller competitors SK Hynix Inc. along with Micron Technology Inc., has been experiencing an industry slowdown. In response to sluggish demand for gadgets and an oversupply of chip inventory, dependable clients, such as manufacturers of personal computers and mobile phones, have reduced their purchases.

As per Samsung’s initial figures, operating income decreased to roughly 2.4 trillion won which is approximately $1.8 billion despite a decline of 13 percent in earnings in the three months leading up to September. The figures are better than the record 95 percent year-on-year decline in the previous quarter, which is in line with analyst predictions.

Expectations are rising that Samsung’s semiconductor business “has pretty much passed the bottom,” said Sanjeev Rana, head of Korea Research at CLSA. “And the recovery is underway in the fourth quarter.”
finance.yahoo.com

Samsung now aims to take advantage of the long-expected rise in AI-related technology expenditure, which is being driven by enthusiasm among investors and customers for OpenAI’s ChatGPT launch last autumn.

However, Samsung is lagging behind tiny Hynix, the primary provider of next-generation DRAM to artificial intelligence chip manufacturer Nvidia Corp., in building the tools required to train artificial intelligence models. By 2024, Samsung claims it will have doubled its production capacity for high-bandwidth memory, which has the capability required to accelerate AI training

Samsung is a leader in the memory market, which quickly increased production to satisfy demand brought on by the epidemic. The business continued to spend throughout the recession, burdening itself and its major clients with excessive inventory.

“The result was better than expected,” said Lee Seung-Woo, an analyst at Eugene Investment & Securities. “The bottom for the memory chip industry is behind us and Samsung’s results showed that.”
finance.yahoo.com

Also Read: BlackRock Invests in German Fintech Firm Targeting New Investors

However, Samsung and Hynix have stated they will withstand financial turmoil by reducing the manufacture of NAND chips used in personal computers and smartphones until AI-related demand turns into revenue.

Before trading on Wednesday, shares of Hynix had increased by more than 60 percent compared to Samsung’s rise of 20 percent earlier this year.

Suhani Jain

I am a student pursuing my bachelor’s in information technology. I have a interest in writing so, I am working a freelance content writer because I enjoy writing. I also write poetries. I believe in the quote by anne frank “paper has more patience than person

Intel CEO Says the Chipmaker’s Technology Is Central to AI Boom

Leave a Comment / Artificial Intellegence, News, Tech News / By Sandhya Gupta

In a bold and ambitious statement, Intel Corp.’s Chief Executive Officer, Pat Gelsinger, has emphasized the pivotal role that the company’s technology will play in the forthcoming AI revolution.

Speaking at Intel’s annual Innovation conference, Gelsinger outlined Intel’s advancements in production technology and developer tools for AI, underlining how these innovations are set to shape the AI landscape. Gelsinger believes that the surge in AI capabilities driven by personal computers will create unprecedented opportunities for developers and businesses. He described AI as a “generational shift,” one that will usher in a new era of global expansion where computing becomes even more fundamental to shaping a better future for humanity. Gelsinger stated, “For developers, this creates massive societal and business opportunities to push the boundaries of what’s possible, to create solutions to the world’s biggest challenges.”

Intel, once a dominant player in the semiconductor industry, has been working tirelessly to regain its leadership position. Gelsinger is resolute in his vision of Intel’s resurgence as a driving force in the AI computing sector. He argued that AI’s reach will not be confined solely to the data centers of major cloud providers, such as Nvidia Corp., which has been dominating the AI accelerator market. Instead, AI will extend its influence into new domains, including the PC market, which has seen limited growth in recent years.

As part of Intel’s ambitious agenda, Gelsinger reaffirmed the company’s commitment to rapidly upgrading its manufacturing technology. He revealed that Intel 3, a cutting-edge chipmaking technique, will be introduced by the end of the year. Intel aims to overcome its past manufacturing setbacks and compete effectively with Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co.

Intel has also made strides in its accelerator efforts, with the Gaudi2 product line gaining recognition in certain areas. Gelsinger unveiled plans for Intel Core Ultra processors, equipped with an integrated “neural processing unit” designed to accelerate AI software in PCs. These processors are slated for release in December and are expected to bring AI capabilities to a wider range of personal computing devices.

Also Read: IBM Commits To Train 2 Million in Artificial Intelligence in Three Years, With a Focus on Underrepresented Communities

In a surprising move, Gelsinger announced that Intel would open its factory network to external customers, even if they were potential competitors. This venture into the foundry business is a bold step, requiring Intel to reestablish itself as a pioneer in advanced manufacturing by 2025, a promise that Gelsinger is determined to fulfill.

Pat Gelsinger’s resounding message at the Innovation conference is clear: Intel intends to be at the forefront of the AI revolution, leveraging its technological advancements and manufacturing prowess to shape the future of computing. As the AI boom continues to reshape industries and societies, Intel is poised to play a pivotal role in driving innovation and addressing some of the world’s most pressing challenges.

Sandhya Gupta

I am a law graduate from NLU Lucknow. I have a flair for creative writing and hence in my free time work as a freelance content writer.

Samsung Gains 6% on Reports It’s Joining Nvidia AI Suppliers

Leave a Comment / News, Tech News / By Suhani Jain

After news broke that Samsung Electronics Co. had been awarded the contract to provide cutting-edge memory chips to AI pioneer Nvidia Corp., It hiked by more than six percent.

The top electronics manufacturer in South Korea will begin selling HBM3, a new type of memory designed to operate with artificial intelligence acceleration devices, in the fourth quarter, according to Citigroup researchers which also involves Peter Lee. Since January 2021, its share price has gone up the highest. Until today, SK Hynix Inc., the arch-enemy of Nvidia, was the only supplier of high-bandwidth memory space for its artificial intelligence accelerators.

“Following its successful entry into Nvidia’s HBM supply chain, we expect Samsung to emerge as one of the leading suppliers of HBM3,” Lee and Josh Yang wrote in a report, “Citigroup’s Value for Samsung.” The target has been increased from 110,000 Won to 120,000 Won. “We see Samsung as a long-term beneficiary of the growth of the memory and AI computing markets.”
biz.crast.net

The Korea Economic Daily disclosed a report on Friday, quoting anonymous business sources, that Samsung reached an agreement to provide HBM3 to Nvidia shortly after its chips cleared the United States chip developer’s last-stage quality checks. According to the report, Samsung will begin providing the premium memory chips in as little as next month.

The arrival of Samsung as an extra HBM3 provider will be advantageous to Nvidia. As it broadens its possibilities, the Santa Clara, corporation based in California, whose stocks have quadrupled in worth to a total market capitalization of 1.2 trillion dollars, can see greater cost by performance as well as a more consistent supply.

A representative for Samsung turned down to comment on this topic.

On hearing the news, Samsung’s manufacturers also saw their stocks rise, with Hana Micron Inc., a company that tests and packages chips, increasing by an average per day of 30 percent. Dedak Electronics Co., a provider of printed circuit boards, increased 7.4 percent.

HBM3, which researchers believe is suited for bandwidth-hungry artificial intelligence (AI) applications, is a technology in which Hynix leads the world. The latest HBM chip will reportedly be released by Samsung sometime this year. Hynix’s stock decreased 1.5 percent on Friday after initially gaining.

Suhani Jain

Tokyo Electron’s Sales Dive 17% as Chip Market Malaise Persists

Leave a Comment / News, Tech News / By Sandhya Gupta

In the midst of a persisting chip market downturn, Tokyo Electron Ltd., Asia’s largest semiconductor equipment manufacturer, is finding solace in the accelerated investments by Chinese chip-makers.

As the United States and its allies impose stricter export controls on cutting-edge technology, Chinese players are turning to mature semiconductor equipment, bolstering Tokyo Electron’s revenues. Tokyo Electron’s CEO, Toshiki Kawai, revealed on an earnings call that the company is experiencing “extremely strong investment” in China, leading to the acquisition of new customers. Kawai asserted that this trend is not a fleeting phenomenon limited to the current year but is anticipated to continue due to sustained demand.

This surge in demand from China is effectively compensating for the investment delays encountered among high-end logic chip manufacturers and foundries. Remarkably, China’s contribution accounted for 39% of Tokyo Electron’s revenues in the recent June quarter.

Tokyo Electron occupies a pivotal role in the chipmaking supply chain, supplying the machinery pivotal to Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co., and Intel Corp. The company is weathering the storm by aligning its strategy with the prevalent market dynamics. It anticipates continued investment momentum in the automotive and industrial sectors, consistent with trends observed in the preceding fiscal year.

Despite a challenging global electronics market that led to a 17% sales drop in the June quarter, Tokyo Electron remains resolute in its full-year revenue forecast of ¥1.7 trillion ($11.8 billion). The company achieved an operating profit of ¥82.4 billion, slightly surpassing estimates. Hiroshi Kawamoto, Tokyo Electron’s finance unit head, stated that the Chinese clients are proactively adapting their strategies to circumvent restrictions, showcasing resilience in the face of evolving challenges.

Also Read: Apple is working on its most powerful MacBook chip yet, the M3 Max

Notably, the company remains unscathed by Japan’s newly imposed constraints on chip-making equipment shipments, indicating its operational robustness. Tokyo Electron’s positive performance can be attributed to the advantageous boost from China, which counterbalances the subdued spending witnessed in other quarters due to the prevailing market slump. The global chip landscape has been marked by uncertainty, leading to July’s announcement by TSMC of a lowered annual sales projection and the postponement of its Arizona project’s production initiation to 2025.

However, despite the subdued market conditions, Tokyo Electron’s Hiroshi Kawamoto remains optimistic about the future. He revealed that the company has received numerous inquiries regarding artificial intelligence (AI)-related investments. Although the initial impact might be modest, the company believes that AI will gradually contribute to its earnings in the upcoming fiscal year. As the chip market experienced a probable bottoming out last quarter, Tokyo Electron positions itself to harness the evolving landscape, counting on innovation and strategic partnerships to navigate the ongoing challenges.

Sandhya Gupta

I am a law graduate from NLU Lucknow. I have a flair for creative writing and hence in my free time work as a freelance content writer.

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