Samsung Electronics anticipates sales from its advanced chip packaging division to reach $100 million or more

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Samsung Electronics anticipates sales from its advanced chip packaging division to reach $100 million or more
Samsung Electronics anticipates sales from its advanced chip packaging division to reach $100 million or more

Samsung Electronics (005930.KS), which redesigned its website, said on Wednesday that co-CEO Kye-Hyun Kyung expects the company’s next series of advanced chip-packaging equipment to generate at least $100 million in revenue this year.

Kyung stated that he anticipates Samsung’s investment to start showing real returns in the second half of this year. Samsung established advanced chip packaging as a business unit last year.

During Samsung’s annual general shareholders’ meeting, Kyung spoke.

According to Kyung, the goal of Samsung’s memory chip division this year is to increase its profit margin over its market share.

Data source TrendForce reports that in the fourth quarter of last year, Samsung’s market share for DRAM chips—which are utilized in electronic devices—was 45.5%.

By mass-producing a 12-stack version of high-bandwidth memory (HBM) chips called HBM3E, Samsung hopes to gain a competitive edge in the high-end memory chips that the growing artificial intelligence market demands.

In order to meet client demands, Samsung will make use of having memory chips, chip contract manufacturing, and chip design firms under one roof for a future generation of HBM chips called HBM4, which is expected to be delivered in 2025 and have more customized designs, Kyung added.

In response to a query from a shareholder regarding Samsung’s recent loss in the HBM market relative to competitor SK Hynix (000660.KS), which opened a new tab, Kyung stated, “We’re better prepared to prevent that from happening again in the future.”.

After Nvidia (NVDA.O) unveiled a new tab, Samsung Electronics shares surged by as much as 6.04% on Wednesday, putting them on track for their biggest one-day increase since early September. According to CEO Jensen Huang, Samsung’s HBM chips are being approved for use by the leader in AI semiconductors.

According to Kyung, Samsung anticipates seeing noticeable outcomes from further memory products—such as compute express link (CXL) and processing-in-memory (PIM) products—shortly.

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