Samsung, a global leader in the tech industry, is expecting a significant rise in its chip revenue by 2024, harking back to its 2022 level.
Samsung’s profits took a severe hit due to a slump in chip revenue. However, a shift in tide is anticipated with a surge in demand for memory products required for AI applications. Samsung’s chip revenue for 2024 is projected to mirror its 2022 levels, thereby promising a substantial profit increment.
Remember, in the world of technology, evolution is the key to success. And for Samsung, this evolution is echoed in its revenue growth.
This expectation was voiced by Samsung’s co-CEO, Kyung Kye-hyun, at the annual shareholder meeting. Kye-hun, who heads Samsung’s device solutions business, including the chip division, also expressed the company’s goal to become the world’s largest semiconductor company in the next 2-3 years.
The decline in demand and falling prices for memory chips posed significant challenges for Samsung, despite its position as the world’s largest memory chipmaker. The combined revenue for all its semiconductor products still lags behind Intel.
Addressing the criticism over Samsung’s lagging behind in the high bandwidth memory segment, Kye-hyun explained that unfavorable market conditions played a significant role in this. However, the company is now striving to regain its competitive edge and create a robust business that can withstand market fluctuations.
The company’s new HBM3E product has already received high praise from customers like NVIDIA. Samsung is also in discussions with customers about providing advanced compute express links and processing in memory products.
Samsung’s HBM3E 12H advanced memory chips have won accolades from NVIDIA’s CEO, Jensen Huang. This corroborates the close collaboration between these two industry titans.
In the world of technology, collaboration leads to innovation, and innovation leads to success.
Samsung Electronics, a leading supplier of memory chips, has been investing heavily in expanding its production facilities. Samsung Display, one of its many subsidiaries, has provided $4.3 billion to fund this semiconductor expansion.
With the ongoing AI boom, NVIDIA has emerged as a global supplier of AI semiconductor solutions. This surge in demand for AI products necessitates advanced memory chips, positioning Samsung favorably to capitalize on this trend.
Amid uncertainties in the global business environment, Samsung is doubling down on AI as a significant driver of future growth.
According to Clarivate, an analytics company, Samsung Electronics ranks first in research and innovation for 2024.
