Samsung’s semiconductor division has faced criticism for underdelivering on its promise, with the company’s 2024 profit coming in smaller than expected. The firm is heavily investing in artificial intelligence (AI) memory technology, seeking to narrow the gap between itself and rival SK Hynix. Despite this effort, Samsung’s efforts have yet to gain significant traction.
Nvidia has delayed approval for a less advanced version of Samsung’s high-bandwidth memory (HBM), further complicating the company’s prospects in the AI market. With capital expenditures reaching 53.6 trillion won ($37 billion) in 2024, Samsung is ramping up its research and development costs to stay competitive.
The company’s executives have confirmed that the investment will remain at a similar level to last year, with a focus on bolstering its presence in the AI memory space. However, this strategy appears to be taking time, leaving Samsung’s position vulnerable to further erosion by rival SK Hynix.
Source: https://www.bloomberg.com/news/articles/2025-01-31/samsung-s-chip-profit-misses-on-costly-ai-memory-catchup-race