Samsung is anticipated to face a significant revenue decline in the second quarter of 2025 following the US-imposed AI technology export restrictions to China.
Export Restrictions and Impact on Samsung
The Trump administration's policy of restricting AI technology exports to China has significantly impacted over 140 companies in the semiconductor industry. Samsung, a major player in the high-performance memory production sector, has been notably hit by these restrictions, which analysts predict will lead to a substantial decrease in sales to China.
Samsung's Strategies to Combat Losses
To counter the anticipated losses, Samsung plans to release an enhanced version of its HBM3E chips in March 2025. Additionally, the company has reorganized its chip manufacturing division by appointing Jun Young-hyun as the head of its memory chip business and co-chief executive and promoted Han Jin-man to lead the foundry unit.
Competitors' Market Position
Samsung's competitors, such as SK Hynix, are showing resilience, particularly in supplying HBM to major clients like Nvidia. For the first time in Q4 2024, SK Hynix surpassed Samsung in terms of quarterly profit.
The AI technology export restrictions are significantly affecting Samsung, but the company is taking active measures to mitigate the situation through innovation and leadership restructuring.
