Samsung may lose 20 % of the sales of artificial intelligence chips in the first quarter of the United States’ restrictions on China
The bottom of Samsung is the feeling of the US decision to limit China’s arrival to advanced artificial intelligence technology. The company relies on its exports to China for a large part of its revenues in chips, and it is now preparing to decline in the demand for the first quarter of 2025.
President Donald Trump’s administration has always been abusive with China. The President has constantly called for restrictions on customs duties and exporting China during his first term and now. He also remembers trade imbalances and intentions to protect American industries.
Trump’s efforts to reduce exports to China in the technology and manufacturing sectors.
Recently, the United States has launched its third large suppression targeting the semiconductor industry in China, curbing its exports to 140 companies. One of the restrictions that the United States has on the highly frequency range used in artificial intelligence chips that comply with the technology made by Samsung and Sk Hynix in South Korea and Micron technology that is taken from the United States known as HBM 2.
Samsung faces great losses in the artificial intelligence market
Reuters mentioned again in December Samsung It will be the most affected by the export restrictions imposed by the United States government, and now, the company is preparing for a 20 % loss With expectations for a decrease in demand for HBM chips.
The restriction aims to reduce the arrival of China to advanced artificial intelligence techniques and military applications. Samsung is not affected by it because it is very active in both industries and has extensive dealings with Chinese customers.
However, Samsung is already looking forward. The South Korea technology maker is already studied by release of the HBM3E enhanced version in March. It is expected that the new product will reinforce the demand after the storm of a storm of Q1 2025 sales.
Samsung also Driving in the chips section. The company has appointed Jun Young-Hyun as head of Memory Chip Business and Co. Roj Han Jinman led the museum unit.
These changes are expected to help the artificial intelligence chips market to become more competitive and address the investor concerns about the technology feature.
Samsung’s competitors acquire an advantage
While the faults of Samsung projects, I informed competitors like SK Hynix about strong offers, especially in providing HBM chips for major customers like NVIDIA.
For the first time, SK Hynix Samsung exceeded a separate profit in the fourth quarter of 2024. Samsung recorded a operating profit of 2.9 trillion from South Korea (1.995 billion dollars) the previous quarter.
“Samsung has lost its leadership in HBMS, and it seems that even in the memory of basic commodities, it is more vulnerable to Chinese competition,” He said SANJEEV RANA, Head of Stock Research in Korea at CLSA.
He added: “Hynix was more flexible because they had this large part of the revenue from the demand for HBM, which is really good.” Sanjev also mentioned that the Chinese production of basic commodity memory may grow and may increase in the coming months.
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