How AI is Revolutionizing Samsung’s Smartphone Sales and High-End Chip Production

How AI is Revolutionizing Samsung's Smartphone Sales and High-End Chip Production

AI Drives Samsung’s Smartphone Sales and Chip Production

Samsung Electronics is optimistic about the future on the back of strong demand for artificial intelligence (AI) and is gearing up to meet the rising demands for high-end chips.

Smartphone Sales

  • Samsung sold approximately 60 million smartphones during the first quarter, regaining its title as the world’s top smartphone vendor from Apple.
  • AI functions, such as enhanced camera capabilities and personalized recommendations, have been significant drivers of sales of Samsung’s S24 phones.
  • About 50% of customers purchased the S24 specifically for its AI features, and 60% regularly use them.

Chip Production

  • Samsung is ramping up production of high bandwidth memory (HBM) chips, which are crucial for AI applications.
  • The company plans to triple its HBM supply in 2024 compared to last year.
  • Samsung has begun mass production of its latest 8-layer HBM3E chips, targeting generative AI chipsets.
  • Analysts anticipate that Samsung’s 8-layer HBM3E will supply Nvidia, while the 12-layer version may cater to both Nvidia and AMD.

AI’s Impact on Chip Demand

  • AI is fueling demand for high-end chips like HBM, pushing prices up.
  • Samsung is positioning itself to capitalize on this demand by expanding its HBM production capacity.
  • The company also plans to increase offerings of high-end solid-state drives (SSDs) to meet AI server demand.

Samsung’s focus on AI-driven products and chip innovation positions it well to benefit from the growing adoption of AI technologies across various industries.

By Mehek

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