The new head of Samsung Electronics Co’s semiconductor division urged employees to work their way past challenges in the business, making his first remarks to staff after the surprise departure of his predecessor last week.
Jun Young-hyun — a memory chip veteran who is returning to the company after leading Samsung SDI Co — unexpectedly replaced Kyung Kye-hyun as the new leader of its most important business line on Tuesday last week.
“I am confident that we can overcome the recent difficulties as quickly as possible if we continue to build on the strengths we have accumulated so far and continue the culture of communication and discussion that is unique to semiconductors,” Jun said on an internal site seen by Bloomberg News.
Photo: Jung Yeon-je, AFP
Jun would be facing a series of challenges. Its semiconductor division lost about 15 trillion won (US$10.9 billion) last year. The company has fallen behind rival SK Hynix Inc in high-bandwidth memory chips, which have seen explosive growth, as they are used for training artificial intelligence (AI) models like ChatGPT. The firm is also facing the first-ever strike in its 55-year history.
“Especially now, in the age of AI, we are facing a future that we have never experienced before,” he said. “This poses a great challenge to us, but if we respond with the right direction, it can be a new opportunity for the semiconductor business, which is essential in the AI era.”
Investors have become increasingly concerned about Samsung’s response to SK Hynix, which reported its fastest pace of revenue growth since 2010. That has propelled about 40 percent rally in SK Hynix shares since the start of this year, compared with a slump of about 5 percent for Samsung’s.
In other news, India would have to attract a wider range of semiconductor suppliers to succeed in building a robust domestic chip industry, trade group SEMI president and CEO Ajit Manocha said.
“They need to really increase the emphasis on the ecosystem because, without an ecosystem, growth will be limited,” Manocha said on the sidelines of the India-Taiwan Semiconductor Forum in Taipei on Thursday. “They need to encourage smaller and medium-sized companies to come and set up shop in India.”
Indian Prime Minister Narendra Modi has set up a US$10 billion fund to help attract global chipmakers such as Taiwan Semiconductor Manufacturing Co (台積電).
Manocha said that if Modi wins a third term, the country is very likely to expand the program beyond US$10 billion to help create a comprehensive ecosystem.
However, no major semiconductor firms have committed to significant investments in India so far, partly due to challenges with infrastructure, including a stable power supply.
The two most high-profile projects are a US$11 billion site by the Tata Group in partnership with Powerchip Semiconductor Manufacturing Corp (力積電) to make mature chips, and a US$2.75 billion assembly and testing facility by Micron Technology Inc.
India is on the right track, Manocha said, adding that the Tata and Micron projects can act as catalysts for the country’s plans to build a technology foundation in the country.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
AI-FUELED DEMAND: The company has been benefiting from the skyrocketing prices for DRAM chips amid the AI frenzy, especially its core product — DDR4 DRAM chips DRAM chipmaker Nanya Technology Corp (南亞科技) yesterday reported that its revenue for the first quarter surged 582.91 percent to NT$49.09 billion (US$1.54 billion) from NT$7.19 billion a year earlier, as the supply crunch caused chip price spikes. Last quarter’s figure is the highest on record. On a quarterly basis, revenue jumped 63.14 percent from NT$30.09 billion, the company said. In January, Nanya Technology expected global DRAM supply scarcity to continue through the first half of 2028, thanks to strong demand for artificial intelligence (AI) applications. Market researcher TrendForce Corp (集邦科技) forecast prices of standard DRAM chips would rise between 58 percent and 63
HIGHER PRICES: Given rising energy costs, CPC raised natural gas prices for generators by 41.58%, which Taipower said would raise its power generation costs by NT$10 billion State-run CPC Corp, Taiwan (CPC, 台灣中油) has activated its fourth naphtha cracker to boost ethylene supply, aiming to ease concerns over plastic material shortages amid tensions in the Middle East, the Ministry of Economic Affairs said yesterday. The move is expected to add 19,000 tonnes of supply this month and 30,000 tonnes next month, Deputy Minister of Economic Affairs Ho Chin-tsang (何晉滄) said at a meeting of the legislature’s Economics Committee in Taipei. CPC on Tuesday held talks with major polyethylene producers, including Formosa Plastics Corp (台塑), Asia Polymer Corp (亞聚) and USI Corp (台聚), and pledged to supply ethylene feedstock
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