In addition to strong performance in its semiconductor business, Samsung has been strategically positioning itself to meet the growing compute power needs of generative AI and the servers required to support them. The company has invested in the production of high-bandwidth memory (HBM) chips used in AI, 5G, IoT, graphic processing, virtual reality, and augmented reality systems. These chips offer faster data processing and lower power consumption compared to traditional NAND memory chips.
In line with this strategy, Samsung recently announced the mass production of high-performance memory chips, including HBM3E 8H (8-layer) DRAM and V9 NAND chips, commonly used in enterprise servers, AI, and cloud devices. The company plans to further expand its HBM production with the introduction of HBM3E 12H (12-layer) chips in the second quarter of this year.
Samsung’s foundry business has also made significant progress in the development of 3-nanometer and 2-nanometer AI chips. The company anticipates sustained demand for these advanced chips in the second half of 2024, driven by the increasing adoption of generative AI. Despite ongoing macroeconomic volatility and geopolitical concerns, Samsung expects business conditions to remain favorable, supported by strong demand for AI-related products and services.
The Biden administration recently approved a $6.4 billion grant for Samsung to establish semiconductor factories in Texas under the CHIPS and Science Act. This investment will enable Samsung to develop cutting-edge chips, bolstering domestic semiconductor production alongside other grant recipients like Micron and TSMC.
