Samsung Says Memory Shortages Will Last Through 2028 Amid Long-Term Deals
Samsung said long-term contracts will lock up 60% to 70% of capacity as HBM4 revenue is set to more than triple in the third quarter.
- On Thursday, Samsung Electronics reported an operating profit of 89.2 trillion won , a more than 250-fold increase from a year prior. The company warned that global memory chip shortages will likely worsen and extend through 2028.
- To reduce exposure to boom-and-bust cycles, Samsung has signed multi-year supply agreements with the world's five largest data center firms, featuring floor pricing and upfront payments lasting at least five years.
- While the semiconductor unit thrived, Samsung's mobile division posted a 700 billion won loss due to surging chip costs. The company expects its foundry business to turn around "in the near future."
- Chief Financial Officer Park Soon-cheol said Samsung is "in active discussion" regarding its shareholder return program for this year. The company also confirmed it has no plans for a U.S. listing, citing stable cash generation.
- Samsung plans to raise capital spending by around 50% this year to meet surging AI demand. The company's Taylor, Texas plant will begin operations this year, with a second facility targeting mass production in 2030.
27 Articles
27 Articles
Samsung warns memory crunch will last through 2028 as profit rises 19-fold
Samsung Electronics is warning that the current memory supply crunch will deepen next year and persist through 2028, a shortage that keeps padding its own record profits at the expense of enterprise customers and consumers. The Korean conglomerate said agentic AI has added to demand already generated by model training, driving an "unprecedented rise" in requirements for AI servers and other computing infrastructure. Memory makers continue to pri…
Samsung Expands Texas Operations as Global Memory Crunch Worsens Through 2028
Get latest articles and stories on Business at LatestLY. Samsung bets on accelerating its manufacturing footprint in Texas as surging artificial intelligence demand strains advanced-chip capacity worldwide, stretching into 2028, according to a news report by The Korea Herald. Business News | Samsung Expands Texas Operations as Global Memory Crunch Worsens Through 2028.
Top Chip Analyst: Semiconductor Oversupply Is Nearly Impossible Before 2028. Why He’s Bullish on Memory
A top Wall Street chip analyst says the semiconductor selloff gripping markets has almost nothing to do with actual supply and demand, and the real reason why comes down to a physical constraint most investors are overlooking.
Samsung Electronics has recorded a 250-fold increase in the profit of its chip division and now predicts that the memory shortage should worsen next year, reflecting the accelerated pace of the global expansion of the infrastructure for artificial intelligence. The company's shares have risen 8.4% this Thursday, before returning most of the gains.
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