Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Samsung Electronics has reported weak demand for its memory chips is expected to limit earnings growth in the current quarter, with its problems compounded by US restrictions on supplying advanced semiconductors used in artificial intelligence hardware.The South Korean company said on Friday that it expects overall memory chip demand to start recovering in the second quarter. Its shares fell around 2.5 per cent on disappointment at the weak earnings forecast.\u201cIn the first quarter of 2025\u2009.\u2009.\u2009.\u2009overall earnings improvement may be limited due to weakness in the semiconductor business,\u201d Samsung, the world\u2019s largest memory chipmaker, said in a statement.Kim Jae-june, executive vice-president of Samsung\u2019s memory business, later added: \u201cThere will be some temporary restrictions in our [high-bandwidth memory] chip sales in the first quarter. We expect some impact on our HBM demand from not just US restrictions on exports of high-end chips but also a shift in demand for improved chips by major clients.\u201dSamsung has been under pressure after failing to ride the AI investment wave. Its HBM AI chips have not matched the capabilities of those made by SK Hynix, nor won approval from Nvidia, a key customer. Samsung has also been hit hard by the sluggish Dram chip cycle due to its bigger exposure to commodity chips and the rise of Chinese rivals such as CXMT.SK Hynix shares dropped as much as 12 per cent on Friday morning as markets reopened after the lunar new year break \u2014 catching up on concerns that big spending on data centres may have peaked, with DeepSeek\u2019s budget AI model triggering panic over future demand.Samsung executives told analysts on Friday the company was reducing its exposure to conventional memory semiconductors, focusing more on higher-margin chips used in AI servers, where demand \u201cremains strong\u201d. But its contract-chipmaking foundry business remained weak amid soft demand for chips used in smartphones and PCs.Its investment in memory chips would be similar to last year\u2019s level, it said. The company reported total capital spending of Won53.6tn ($37bn) last year, with the bulk going to its chip unit.Samsung has reorganised its team of engineers to strengthen its HBM competitiveness, but Nvidia chief Jensen Huang said this month that Samsung had to \u201cengineer a new design\u201d to supply HBM chips to his company, although he added that \u201cthey can do it and they are working very fast\u201d.For the first time, SK Hynix overtook Samsung on quarterly profit in the fourth quarter, driven by its lead in HBM sales, which it expects to double this year. Samsung\u2019s chip division reported an operating profit of Won2.9tn in the October-December quarter, down 26 per cent from the previous quarter. \u00a0\u00a0\u00a0\u201cSamsung has lost its leadership in HBMs and it seems like even in commodity memory they are more exposed to Chinese competition,\u201d said Sanjeev Rana, head of Korea equity research at CLSA.\u201cHynix has been more resilient because they have this big portion of revenue from HBM demand which is really good,\u201d he added. \u201cChina\u2019s production of commodity memory has been growing and could pick up in the coming months\u2009.\u2009.\u2009.\u2009and there are some concerns about that as well.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Samsung Electronics has reported weak demand for its memory chips is expected to limit earnings growth in the current quarter, with its problems compounded by US<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":{"0":"post-187546","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tech"},"_links":{"self":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/187546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/comments?post=187546"}],"version-history":[{"count":0,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/187546\/revisions"}],"wp:attachment":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/media?parent=187546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/categories?post=187546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/tags?post=187546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}