AI summary
Summary of article:
Samsung said that due to the increasing demand for AI, HPC and HBM, 2nm orders will continue to grow next year, and related revenues will exceed 50% of foundry sales, and it will increase its supply capacity through the expansion of its Taylor plant.
SAMSUNG Electronics said in an earnings call on the 29th that it expects the volume of wafer foundry orders for the 2nm process this year will more than double that of last year.
Samsung Electronics said sales and profits at its foundry business improved last quarter, led by increased sales of high-bandwidth memory (HBM) chips and advanced node products. 2-nanometer process project receives further support from major cloud service providers (CSPs)artificial intelligence (AI) and high-efficiency computing (HPC) customers received new orders.
Samsung Electronics also expects its wafer foundry revenue to grow by double digits quarter-on-quarter and year-on-year this quarter, driven primarily by increased supply of memory-related products and key customers in the United States and mainland China. Samsung Electronics also plans to increase mass production of new mobile products using the second-generation 2nm process this quarter, as well as neural processor (NPU) products for key customers.
The South Korean electronics giant expects that as demand for AI and HPC products increases, the proportion of AI and HPC-related revenues in overall foundry sales will exceed 50% next year, mainly for 4 nanometer and 2 nanometer advanced process nodes.
Samsung Electronics estimates that after the mass production of new products by major 2nm process customers in the second half of the year, the capacity utilization rate of advanced process nodes will improve significantly. As far as processes below 5 nm are concerned, customer demand is expected to exceed production capacity.
Samsung Electronics plans to strengthen its ability to respond to the needs of AI and HPC customers by opening up investments in its wafer fab in Tyler, Texas, and expanding mass production of advanced processes. The company is strengthening strategic partnerships with its customers by signing long term agreements (LTAs) with key customers.
Summary FAQ
-
Samsung reported at the financial report conference that the volume of 2nm process wafer foundry orders this year is expected to more than double from last year, indicating that the demand for advanced processes is continuously increasing, and new cases mainly come from cloud, AI and HPC customers.
-
As the demand for AI and HPC products increases, Samsung estimates that related revenues will exceed 50% of total foundry sales next year, with the main focus on advanced nodes such as 4nm and 2nm, which will promote the upgrading of the business structure.
-
Samsung plans to deepen cooperation through long-term agreements with key customers and accelerate mass production of 2nm and more advanced processes to meet AI and HPC needs, as well as activate and expand its investment in the wafer fab in Tyler, Texas, United States.
