Prime Highlights
- Samsung Electronics’ shares jumped 3.8%after customers praised its next-generation HBM4 high-bandwidth memory chip, signaling a potential comeback in the AI chip market.
- The company expects strong growth in its foundry businesswhile preparing to manage risks from rising component costs and global trade barriers.
Key Facts
- Samsung is in discussions with Nvidia to supply HBM4 chips, reflecting rising global demand for AI computing power.
- Co-CEO TM Roh highlighted plans to spread out the supply chain and improve operations worldwideto mitigate cost and tariff risks in 2026.
Background
Shares of Samsung Electronics climbed sharply in morning trade after the company said customers had praised the competitiveness of its next-generation high-bandwidth memory chip, HBM4, raising hopes of a comeback in the fast-growing AI chip market.
The stock rose as much as 3.8%, beating the broader KOSPI index, which gained 1.1%. In a New Year message, co-chief executive and head of the chip division Jun Young-hyun said customers had welcomed the performance of the new memory product.
“On HBM4 in particular, customers have even stated that ‘Samsung is back’,” Jun said, adding that the company would continue working to improve its technology and market position.
Samsung has faced tough competition in the high-bandwidth memory space, especially from local rival SK Hynix. In October, the company said it was in close talks with U.S. artificial intelligence leader Nvidia to supply its HBM4 chips, as demand for AI computing power continues to surge worldwide.
Jun also highlighted progress in Samsung’s foundry business, which makes chips designed by other companies. He said recent supply agreements with major global customers had prepared the unit for strong growth in the near future.
In a separate New Year address, co-CEO TM Roh, who oversees Samsung’s mobile phones, televisions and home appliances, struck a more cautious tone. He warned that 2026 could bring greater uncertainty, pointing to rising component prices and the impact of global trade barriers.
Roh said Samsung will boost its main strengths by spreading out its supply chain and improving its operations worldwide. The company wants to lower risks from buying parts, controlling costs, and handling tariffs in different markets.
The comments show that Samsung expects a tough global environment next year, even as it looks for new opportunities in advanced memory and foundry services.
