Samsung
Samsung & SK Hynix benefit from China’s AI Drive and US restrictions
China’s imports of South Korean chips from Samsung Electronics and SK Hynix will benefit during the first half of 2024.
Samsung reported that the revenue generated from China increased by 82% year-on-year to 32.35 trillion won (US$24.1 billion) during the first half of this year. According to reports, China accounted for nearly 31% of Samsung’s regional revenue of 104.9 trillion won, which points out a 28% boost from the same period a year earlier.
On the other side, SK Hynix shared a report of a China sales surge, with revenue from clients in the country jumping 122% to 8.6 trillion won, accounting for 30% of its 28.8 trillion won in total revenue for the first half.
Taiwanese research firm TrendForce stated, “The soaring revenue in China echoes with the rumor that the US is reportedly mulling new measures to limit China’s access to AI memory.”
Noticeably, the current US government led by Joe Biden is considering new restrictions on China, and the reason behind this is a fear of forthcoming curbs. China is stockpiling AI chips from Samsung and SK Hynix.
The report also suggests that the potential US export restrictions are the reason behind this surge in chip imports from South Korea. The Korean brand and SK Hynix saw efficient revenue growth from China in the first half of 2024.
Buying activity picked up in the second quarter and was “critical in boosting Korean suppliers” DRAM sales,” TrendForce analyst Tom Hsu said.
