Samsung Pursues AI Chip Acquisitions

Samsung is intensifying its efforts to compete in the advanced memory chip market for artificial intelligence by creating a dedicated mergers and acquisitions unit. This strategic move aims to bolster Samsung's position against competitors like SK Hynix and Micron Technology. The company plans to focus on mass production of next-generation high-bandwidth memory (HBM4) chips, designed to work with AI accelerators from companies like Nvidia.

Samsung anticipates that the demand for AI infrastructure will continue to drive growth and create new market opportunities. The company is also increasing capital spending to expand production of HBM chips and meet rising demand. Samsung's current HBM3E chips are being supplied to major AI industry players, signalling its commitment to capturing a larger share of the AI chip market. The company's semiconductor division has seen a significant increase in operating income, driven by strong memory chip sales.

Samsung is in discussions with Nvidia to supply advanced HBM4 chips and is purchasing Nvidia chips to build an AI-enhanced semiconductor factory. This factory aims to improve manufacturing speed and yields, further solidifying Samsung's position in the AI chip market.