Samsung Electronics today announced new leadership for the next phase of the Company’s growth and to strengthen its future competitiveness, focusing on the Semiconductor business.

The HBM4 chip could also be used in Tesla’s AI data centers under development and its self-driving cars, which are currently fitted with HBM2E chips for pilot programs.

According to industry sources on Nov. 19, Samsung Electronics signed a contract in the third quarter to sell and purchase Semiconductor equipment for the purpose of expanding production facilities at its Suzhou plant (SESS) in China. The contract is valued at approximately 20 billion won.

The new facilities, expected to be completed by December 2027, will feature advanced packaging lines for HBM chips, which are in high demand due to their essential role in AI computing.

According to Japanese media reports, KIOXIA aims to go public through an IPO between December 2024 and June 2025. For the first time, it will utilize Japan's newly introduced listing application method, the S-1 method, which was introduced in October 2023 to shorten the process time required for listing. Depending on market trends, it will continue to explore the possibility of going public within this year (December 2024).

Samsung Electronics' R&D investment in the third quarter of 2024 was 8.87 trillion Korean won, an increase of 9.24% compared to the previous quarter. In terms of DRAM, Samsung Electronics plans to expand sales in the fourth quarter in conjunction with HBM production capacity, accelerate the transition of server DDR5 to 1nm, and actively increase the sales proportion of 32Gb DDR5 high-density products. In terms of NAND, we will expand sales of PCIe Gen5 based on the eighth generation (V8) and plan to mass produce QLC NAND 64TB products with high growth potential.

From January to September this year, the share of Chinese Mainland in South Korea's memory export regions dropped to 37.9%, which remained at 40% until May this year, fell to 39% in June, and has continued to decline since then. The proportions for 2022 and 2023 are 51.4% and 44.7%, respectively.

In the DRAM area, SK hynix is continuing the rapid transition from existing HBM3 to 8-layer HBM3E products. The company also plans to start supplying 12-layer HBM3E products, which were mass-produced last month, in the fourth quarter as scheduled. This makes HBM sales, which accounted for 30% of total DRAM revenues in the third quarter, expected to reach 40% in the fourth quarter.

Nanya Technology and Kioxia Corporation will jointly introduce vertical transistor DRAM technology using oxide Semiconductors, focusing on reducing power consumption and achieving extremely low leakage current.

According to informed sources, Samsung is currently discussing plans to redesign some of the 1a DRAM circuits internally, but has not yet made a final decision as this decision involves various risks.

SK Hynix's robust supply chain and strategic partnerships have positioned the company to exceed market expectations.

In particular, outbound shipments of memory chips shot up 60.7 percent on-year to $8.7 billion as demand for high-value products, like high-bandwidth memory chips, increased.

People familiar with the matter said on Thursday that the review, directed by Vice Chairman Jun Young-hyun, the head of the DS division, will lead to significant job cuts at the presidential level.

According to South Korean securities firms, SK Hynix's third quarter revenue is expected to reach KRW 18 trillion (approximately USD 13.4 billion), a month on month increase of 9.6% and a year-on-year increase of 98.5%. Operating profit is expected to be KRW 6.76 trillion (approximately USD 5.04 billion), a month on month increase of 23.6%.

According to a report by the Export-Import Bank of Korea, the country’s reliance on Chinese imports of five out of six key raw materials for making Semiconductors increased last year.