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.
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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.
The shortage of chips that is triggering the price of mobile phones, computers and other consumer electronics products will get worse. This is what South Korean giant Samsung, the world's largest computer memory manufacturer, predicted this Thursday. "The supply shortage is expected to worsen even further in 2027 and persist until 2028," warned his division director and vice president, Jaejune Kim.Keep reading....
Samsung sees chip shortage extending to 2028, signs long-term supply deals
The Korean tech giant posted a more than 250-fold jump in chip profit, countering investor concerns that feverish AI spending by major technology firms may slow and curb growth
The Economic Times
Samsung sees chip shortage extending to 2028, touts long-term supply deals
Samsung Electronics announced a significant chip profit increase and new supply agreements. The company expects global chip shortages to worsen and continue until 2028. These multi-year deals are with major data center operators worldwide. Samsung's semiconductor unit saw a substantial operating profit surge in the second quarter. This performance highlights the firm's strong position in the memory chip market.
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