Samsung Electronics' pivotal chip division revealed an operating profit of KRW 2.9 trillion for the fourth quarter of last year, markedly lower than the market's anticipation of KRW 4.78 trillion. Conversely, its rival SK Hynix witnessed a significant jump in its operating profit to KRW 8.1 trillion during the same period, riding on the growing demand for AI. In the realm of HBM chips, Samsung trails behind SK Hynix and has yet to establish itself as a key supplier to NVIDIA, whereas SK Hynix has secured a pivotal partnership with the tech giant. Despite Samsung's augmented investments in research and development as well as capacity expansion, the demand for conventional semiconductor chips from personal computers and mobile devices has waned. Competition in the markets for smartphones, TVs, and other electronic products has intensified, and foundry business operating rates have also taken a dip. However, recent developments suggest that Samsung has received approval to supply a version of its fifth-generation HBM chips to NVIDIA, albeit still trailing significantly behind SK Hynix in this sector.
