SK Hynix, Samsung see boost from AI ahead of earnings

South Korea’s SK Hynix and Samsung Electronics reported strong memory chip demand driven by growth in AI applications.

SK Hynix, a key supplier to Nvidia, is expected to benefit as demand for high-bandwidth memory rises.

Samsung’s quarterly profit is projected to triple from a year earlier, supported by higher memory prices.

Both companies are set to report Q4 results on January 29.

Elsewhere, Taiwan Semiconductor Manufacturing Co. plans to spend up to US$56 billion this year, signaling confidence in the sector.

In Japan, firms including Fanuc, Advantest, and Oriental Land are preparing to release earnings amid rising tensions with China, which cut Chinese visitors by 45%.

Fanuc may see profit recovery, while Advantest could lift its profit outlook on yen weakness and strong demand.

Overall, the global AI boom continues to support chip demand.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

The memory booms longevity depends on pricing and capacity allocation dynamics

Rising demand has been widely discussed, yet the size of the supply gap for high-bandwidth memory (HBM) and conventional DRAM (dynamic random-access memory) through 2026 has not been quantified.
TrendForce (a market research firm), citing Chosun Biz, wrote that HBM3E supply prices for 2026 were raised by nearly 20% at Samsung Electronics and SK hynix, a move it called unusual 1.
TrendForce projected that the average selling price (ASP) gap between HBM3e and server DDR5 (a type of server memory standard) will be narrowed by end-2026, from four to five times historically to one to two times 2.
Manufacturing capacity at memory chipmakers can be pulled toward whichever product yields more, since the same lines can be used for HBM3e and DDR5 3.

Beyond chipmakers: AI supply constraints can extend into advanced packaging and substrate supply

Investors and vendors should watch advanced chip packaging that links memory to AI accelerators, along with the chips themselves.
Taiwan Semiconductor Manufacturing Co.s CoWoS (Chip-on-Wafer-on-Substrate, a packaging method used to assemble high-performance chips) often caps AI accelerator shipments when capacity is tight.
Packaging substrates can also run short, including Ajinomoto build-up film (ABF, an insulating film used in high-density chip substrates). Ibiden, Shinko, and Unimicron are often named as potential winners 4.