Samsung Electronics anticipates more than $100 million in sales from its advanced chip packaging business

Samsung Electronics anticipates more than $100 million in sales from its advanced chip packaging business

During Samsung Electronics’ annual general shareholders’ meeting, co-CEO Kye-Hyun Kyung announced that the company expects to generate $100 million or more in revenue from its advanced chip-packaging products this year. The establishment of advanced chip packaging as a business unit last year is expected to yield results from the second half of 2021.

Kyung mentioned that Samsung’s memory chip business aims to achieve a greater profit share than its market share this year. With a market share of 45.5% in DRAM chips in the fourth quarter of last year, Samsung is focused on securing a competitive advantage in high-end memory chips crucial for the rising demand in artificial intelligence applications.

In order to meet the demands of the AI market, Samsung is mass-producing a 12-stack version of high-bandwidth memory (HBM) chips known as HBM3E. Looking ahead to the release of HBM4 chips in 2025, Samsung aims to leverage its integrated structure combining memory chips, chip contract manufacturing, and chip design to cater to customer needs more effectively.

Kyung addressed concerns about Samsung’s recent setback in the HBM market compared to rival SK Hynix and assured shareholders that efforts are being made to prevent this from happening in the future. Following Nvidia CEO Jensen Huang’s comments about qualifying Samsung’s HBM chips for use, Samsung Electronics shares saw a significant increase of up to 6.04% on Wednesday.

Aside from memory products for AI, Samsung is also developing other products like compute express link (CXL) and processing-in-memory (PIM) products, with tangible results expected in the near future. The company’s comprehensive approach to chip development and strategic investments indicate a promising outlook for Samsung Electronics in the semiconductor market.

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