SUWON, South Korea - Samsung Electronics sees strong demand for chips continuing this year, driven by artificial intelligence. Co-CEO Jun Young-hyun said the company is shifting to multi-year contracts with customers to manage demand fluctuations.
Jun highlighted Samsung's partnership with Nvidia in AI infrastructure, noting that the company is a key player in high bandwidth memory (HBM) chip development. He warned of potential bottlenecks in AI datacenters due to power supply constraints and market concerns about an AI bubble.
Despite challenges, Samsung shares have surged 62% this year, outperforming the broader market. The company is competing with SK Hynix and Micron in the global memory chip sector.
Jun also addressed labor issues, acknowledging wage gaps with rivals but stating that performance bonuses are recovering. Unions at Samsung have threatened strikes over pay disputes.