Samsung Electronics predicts a worsening chip shortage due to AI demand, benefiting its chip business but impacting smartphones and displays. Operating profit tripled in Q4, driven by memory chip pricing power. Chip prices are raising costs for smartphones and displays, with memory shortage expected to continue. Samsung’s chip business posted record profits, while mobile profit declined. Expectations for profit surge in current quarter. Mobile and display divisions face challenges from memory price hikes. Plans to ensure stable product supply and minimize profit erosion. Display business anticipates weaker smartphone demand due to chip prices. Samsung producing next-gen HBM chips for Nvidia, expecting tripled revenue. SK Hynix aims to maintain market share in HBM4 production amid rising competition. Chipmakers diverting capacity to AI infrastructure, driving memory chip supply shortage. Chipmakers have pricing power due to strong demand, dictating terms more than ever.

Read more at Yahoo Finance: Samsung sees acute chip shortage persisting, warns of mobiles headwind after profit triples