Macquarie analysts additionally warned of a possible provide glut in Dram amid slowing cellular and PC demand, predicting that Samsung may lose its market management.
Samsung shares fell final week to their lowest stage up to now 18 months as the corporate has struggled to meet up with SK Hynix and Micron in supplying essentially the most superior HBM chips, a vital part of AI techniques.
SK Hynix, the primary provider of HBM chips to Nvidia, stated final month that it started mass manufacturing of 12-layer HBM3E chips, its most superior model, widening its expertise hole with Samsung within the fast-growing, high-margin phase. Samsung’s HBM3E chips are reportedly but to cross trade chief Nvidia’s qualification exams.
“A delayed foray into Nvidia with HBM3E is costing a giant market alternative,” stated Daniel Kim and Jayden Son, analysts at Macquarie, in a current report. “Ramping up manufacturing yield is one other problem, even after product qualification.”
Samsung can be struggling to slim the hole with Taiwan Semiconductor Manufacturing Co in contract chipmaking, the place it’s anticipated to endure billions of {dollars} in losses this 12 months. The Macquarie analysts warned of a risk that Samsung’s $17 billion foundry within the metropolis of Taylor, Texas, may very well be a “large stranded asset” resulting from a scarcity of main purchasers.
Samsung has stated the Taylor fab would start manufacturing in 2026 for modern chips at 4 nm and under to satisfy rising buyer demand for superior nodes amid the AI growth.
Stiffer competitors within the high-end smartphone market is one other concern. Huawei launched a $2,800 tri-fold cellphone final month to tackle Samsung, whereas Apple unveiled the brand new iPhone 16 final month, promising a gradual rollout of latest generative AI options.
The weak steerage comes as Samsung is slicing a few of its 147,000 abroad workers and wrestling with rising employee discontent at house. The corporate stated its abroad subsidiaries had been “conducting routine workforce changes to enhance operational effectivity.”
“Our main focus might be on enhancing our elementary technological competitiveness,” Jun wrote as he acknowledged the “testing occasions” going through the corporate. “We are going to overview our organizational tradition and processes, and take quick motion to rectify any features that require enchancment.”
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