Samsung Electronics expects revenue of $100 million or more this year from its next batch of advanced chip packaging products, co-CEO Kye-Hyun Kyung said on Wednesday.
Samsung created advanced chip packaging as a business unit last year, and Kyung said he expects the results of Samsung’s investment to come in earnest from the second half of this year.
Kyung’s remarks came during Samsung’s annual general meeting of shareholders.
Samsung’s memory chip business is aiming for a bigger profit share than its market share this year, Kyung said.
Samsung’s market share of DRAM chips used in technology devices reached 45.5% in the fourth quarter of last year, according to data provider TrendForce.
To that end, Samsung is trying to secure a competitive edge in high-end memory chips required by the growing demand for artificial intelligence, including mass production of a 12-layer version of high-bandwidth (HBM) chips called HBM3E.
For the future generation of HBM chips, called HBM4, which is likely to be launched in 2025 with more customized designs, Samsung will take advantage of having memory chips, custom chip manufacturing and chip design under one roof to meet customer needs, Kyung said.
In response to a question from shareholders about Samsung’s recent failure in the current HBM market compared to rival SK Hynix, Kyung said, “We are better prepared to prevent this from happening again in the future”.
Samsung Electronics shares rose as much as 6.04% on Wednesday and are poised for their biggest one-day jump since early September after Nvidia CEO Jensen Huang said the AI semiconductor leader qualifies Samsung’s HBM chips for use.
Samsung expects tangible results soon from other memory products being developed for use in AI, including compute express line (CXL) and processing in memory (PIM) products, Kyung added.
