Tesla recently signed a semiconductor contract of $16.5 billion with Samsung to create a new generation of automatic drive chip "AI6". There is news that Samsung is preparing to increase its investment in the United States and plans to establish advanced packaging facilities in the local area.
In the past few years, Samsung's crystalline OEM business has been suspended due to its inability to acquire large customers, but after finalizing cooperation with Tesla, this business is gaining momentum again. According to reports from Hankyung, Samsung will restart its investment in US semiconductor industry, planning to spend up to US$7 billion and set up an advanced packaging factory locally.
Samsung's plan may also be a major code for the tax agreement between South Korea and the United States, and allows Samsung to drive with Taiwan Electric in the world's advanced packaging competition. Currently, foreign capital still retains its crystalline foundry business, but it also believes that this also proves that Samsung still has competitive advantages in its advanced production process in the United States.
According to Bloomberg, Citi analysts pointed out in the report that Samsung and Tesla have a significant meaning, which means that its crystalline foundry business has been highly reliant on internal orders in the past and has begun to transform into deeper external cooperation. If the project is executed smoothly, it will help attract more external customers and also verify Samsung's strategic investment in the US equipment.
Pictet Asset Management Company's Shenzhen Investment Manager Young Jae Lee believes that the market has even been indebted to Samsung's crystalline OEM business in the past, and it is almost unanticipated, but now "the market suddenly finds that they can still do it."
Samsung's high-level blood exchange, striving to achieve the new atmosphere of crystalline OEMSamsung has gradually lost behind-the-station power in its recent advanced process competition, and the high-frequency wide memory (HBM) business has not been progressing smoothly, and OEM production capacity has been at low utilization for a long time. Therefore, Samsung announced last year that it would reorganize its semiconductor industry and appointed memory expert Jun Young-hyun to take over the semiconductor department. After Quan Yonghui took office, he immediately changed the foundry business responsibility and took over by Han Jin-man, who is respected in the US chip department, and extended the former head of Intel and Taiwan Electric's high-level Margaret Han.
Customization, the outside world still retains its attitude to whether Samsung can turn around after cooperation with Tesla, but it undoubtedly brings amusement, which also allows investors to re-evaluate the potential of this largest company in South Korea.
Haris Khurshid, investment manager of Karobaar Capital, Chicago capital, believes that Samsung now has a smooth trend in its material and sufficient cash flow as support, which can indeed attract more aggressive investment layouts, but to truly impress the market, it still has to rely on the actual implementation results of AI chips, not just Tesla's headline news. He expected that Samsung's stock price would enter the entire period first, and it would not be proven that this wave was not just a topic of speculation after the financial report.
In addition, some analysts pointed out that Samsung is still facing many structural challenges, such as being surpassed by its rival SK Hynix for the first time and losing the global DRAM market to occupy the first place. At the same time, Samsung has not yet obtained NVIDIA's official recognition of its latest HBM products in terms of HBM.
However, it can be seen from JPMorgan's report that it has been clear that the market's attention to "Samsung's return to the HBM market" has been increasing recently. Charlie Linton, investment portfolio manager at Ninety One Investment Company in London, said that NVIDIA has announced the suspension of sales of H20 to China and simultaneously launched a Chinese-specific version of RTX chips, and Samsung is the main supplier of these two products.
Although the current stage stock price performance is far superior to last year, most analysts still remind that this wave of stock price reversal may have been too hot. According to technical indicators, Samsung's stock price is currently in the overbuy area, and the market has a total estimated future 12-month upper limit space of the market to be the lowest in four years.
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