[CES 2024] Samsung to continue investing in HBM in 2025

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LAS VEGAS – Samsung Electronics will continue to invest in HBM, or high bandwidth memory, chips next year as the AI boom is expected to create more demand for advanced chips.

koreajoongangdaily.joins.com/, Jan. 12, 2024 – 

"Samsung Electronics increased HBM investment by 2.5 times this year despite unfavorable market conditions, and it's going to be at a similar level next year," Han Jin-man, a Samsung Electronics executive vice president who heads its U.S. chip business, said.

"As orders for HBM and other advanced chips increase, there will be issues with facilities investment in two to three years, leading to an imbalance in supply and demand," he said, adding that adjusting capital expenditure depending on the market is not suitable anymore.

Samsung Electronics' capital expenditure last year is expected at 53.7 trillion won ($41 billion), 47.5 trillion won of which is allocated to the chip division despite facing a severe market downturn from a supply glut. That is on par with the previous year's 53.1 trillion won.

Han expected demand for memory chips will surpass supply in 2025.

"This year should be a preparation year for 2025 where demand will surpass supply," Han said. "The recovery will come into full force from the latter half of this year. The recovery will start in China. There are AI PCs in the U.S. poised to roll out this year. Generally, memory demand rises starting from mobile and then PCs to servers. We are spotting that trend right now."

The biggest concern, however, is unpredictable volatilities, he said.

"Black Swan incident is always the biggest concern, but we are clearly seeing an increase in orders."

The company's $17 billion fabrication plant in Taylor, Texas, is still under negotiation with the state government.

"The construction is going as planned, but the negotiation with the state government and the clients is still ongoing," Han said.

"We will make an announcement when we can."

The emergence of AI will boost Samsung Electronics' leadership in the memory chip industry, the executive said.

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