Samsung Predicts AI-Powered Technology Surge in Second Half Following Robust Q1 2024

Samsung Ramps Up Production of 8-Layer HBM3E Chips for AI-driven Chipsets

Samsung Electronics anticipates continued strong demand for artificial intelligence, which is expected to contribute to tightening the supply of certain high-end chips. This forecast aligns with the company’s strategy to capitalize on the resurgence of the global memory chip market.

The optimistic outlook from Samsung, the world’s largest memory chip maker, led to a 1.8 percent increase in its shares on Tuesday following a report of over a 10-fold rise in first-quarter operating profit.

Despite the positive momentum, Samsung shares have seen a 0.8 percent decline since the beginning of the year. This contrasts with SK Hynix’s 24 percent gain, highlighting Samsung’s efforts to catch up with competitors like SK Hynix in supplying top-end chips such as high bandwidth memory (HBM) crucial for AI applications.

Samsung’s robust performance in the first quarter reflects the company’s resilience amid global supply chain challenges and uncertainties. The increasing demand for AI-driven technologies further strengthens its position in the semiconductor market.

The company aims to leverage this demand by ramping up the production of advanced chips, including the latest HBM chips designed for generative AI chipsets. Samsung recently announced the commencement of mass production of 8-layer HBM3E chips, indicating its focus on meeting the growing demand for AI-centric hardware.

Samsung’s strategic move to prioritize AI-related chip production underscores its commitment to stay at the forefront of technological innovation and cater to emerging market trends. With AI becoming increasingly integrated into various industries, Samsung anticipates sustained growth in demand for AI-driven chips and solutions.

Samsung said AI functions were driving sales of S24 phones, allowing the division to maintain double-digit profitability in the first quarter. About 50 percent of customers said they bought S24 phones for the AI functions, and 60 percent were regularly using the AI functions, the company said.