Journalist
Candice Kim김혜준
candicekim1121@ajupress.com
ReporterSamsung Electronics, SK hynix, LG Electronics, Olive Young, Musinsa & Semiconductor, K-Beauty
Candice Kim is a dedicated business and technology reporter specializing in the intersection of high-tech innovation and fast-paced consumer trends. Her core beats span the semiconductor, IT, cosmetics, and retail sectors, where she provides in-depth coverage of industry titans including Samsung Electronics, SK hynix, and LG Electronics, alongside leading consumer brands like Olive Young and Musinsa. Whether analyzing complex silicon supply chains or tracking the latest shifts in beauty and fashion retail, Candice is committed to delivering sharp, accurate reporting that keeps readers informed on the forces shaping today's most dynamic markets.
"Connecting the dots from silicon chips to consumer shifts."
Latest by Candice Kim
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LG Electronics pushes deeper into Asia commercial laundry market with Thailand franchise deal SEOUL, August 03 (AJP) - LG Electronics is accelerating its push into Asia's commercial laundry market after securing a supply deal with one of Thailand's largest laundromat chains, extending its business-to-business expansion beyond its established North American and European markets. The company said Trendy Wash selected its commercial laundry products based on their durability, energy efficiency and centralized store management capabilities. LG is also expanding its commercial laundry business in the Philippines through distribution partners including ELS, Big Wash and Express Clean, while opening a reference laundromat, Bee Laundry, in Hanoi with local partner WW Vietnam to showcase its commercial products and store management platform to potential customers and investors. The South Korean electronics maker said revenue from its commercial laundry business in Southeast Asia rose about 60 percent last year from a year earlier, with sales more than doubling in Thailand and increasing by more than 50 percent in the Philippines. Beyond Asia, LG is expanding its presence in Europe and North America. The company this month introduced six large-capacity commercial laundry models under its LG Professional brand in Europe, targeting demand for machines with capacities of 20 kilograms or more. The lineup includes washers, dryers and washer-dryer combinations. In North America, LG said it has increased shipments to CSC ServiceWorks, the region's largest commercial laundry solutions provider, while continuing supplies to Wash, another major operator, under an agreement that began in 2024. The company attributed its expansion to proprietary technologies including its inverter direct-drive motor and LaundryCrew, a remote management platform that enables operators to monitor equipment status, control machines remotely and receive maintenance alerts across multiple locations. 2026-08-03 10:44:02 -
Chip boom fuels Samsung heyday, beggars its device business SEOUL, July 30 (AJP) - A trophy child often comes at the expense of a sibling, and the "beggar-thy-family" concept can scarcely be better illustrated than by Samsung Electronics' second-quarter results. The South Korean technology behemoth reported that its Device Solutions (DS) semiconductor division generated an operating profit of 89.2 trillion won ($64.4 billion) on revenue of 127.5 trillion won in the second quarter, translating into a jaw-dropping operating margin of 70.0 percent — a level that has become increasingly familiar among AI memory titans. The bottom line was virtually identical to Samsung's companywide operating profit of 89.5 trillion won on record revenue of 171.5 trillion won, underscoring how the chip division effectively generated the group's entire earnings. The bulky quarterly profit, which eclipsed Samsung's full-year 2025 operating income, more than offset losses in businesses that once made the company a household name. The Mobile eXperience (MX) division, responsible for smartphones, posted a 700 billion won operating loss as soaring memory prices sharply inflated component costs. The culprit was the same force powering the semiconductor bonanza: artificial intelligence. Explosive investment in AI infrastructure has deepened memory shortages and driven prices to unprecedented highs. Memory chips, which traditionally accounted for just 10 to 15 percent of a smartphone's bill of materials, have recently approached half the production cost of premium AI-enabled devices. With consumer demand still subdued, Samsung has been unable to pass those higher costs fully onto buyers, forcing its smartphone business to absorb the squeeze. Samsung's earnings epitomize a broader transformation taking place across South Korea's economy. Just as semiconductors have become the overwhelming driver of Korean exports while much of the manufacturing sector struggles with sluggish global demand, geopolitical risks and intensifying Chinese competition, Samsung's semiconductor division has become powerful enough to mask deterioration across much of the rest of the company. The earnings also explain why Samsung is preparing for a future in which AI extends well beyond semiconductors. In its latest organizational reshuffle, the company placed its robotics business directly under Chairman Jay Y. Lee, reflecting its ambition to accelerate AI transformation and position robotics as the group's next strategic growth engine. More importantly, Samsung believes the current memory upcycle will last far longer than the industry's traditional one- to two-year boom-and-bust pattern. During its earnings conference call, the company said explosive growth in AI infrastructure, agentic AI and sovereign AI projects is expected to keep demand outpacing industry supply through at least 2028 despite aggressive capacity expansion across the semiconductor sector. "We expect the supply-demand imbalance in AI memory to continue through at least 2028," Samsung said, noting that the years required to build new fabrication plants and expand advanced packaging capacity would prevent the industry from responding quickly to surging demand. The company also disclosed that customers are increasingly seeking multi-year supply agreements and making advance payments to secure memory capacity, reflecting what it described as a structural shift in the memory market. Samsung said it has already completed long-term agreements with five global hyperscale data-center customers and is in the final stages of negotiations with another five major AI-related clients. "As time passes, the number of customers signing multi-year supply contracts will continue to increase," the company said. "Once ongoing negotiations are completed, multi-year agreements should be sufficient to cover 60 to 70 percent of our planned medium-term production capacity." If realized, the shift could fundamentally alter one of the semiconductor industry's defining characteristics. For decades, memory chips have been synonymous with violent boom-and-bust cycles as periods of tight supply inevitably gave way to oversupply and collapsing prices. Long-term supply contracts and structurally constrained capacity could instead make elevated memory prices a lasting feature of the AI era rather than a temporary spike. That would strengthen the earnings visibility of Samsung Electronics and SK hynix while raising costs across the broader technology industry, from cloud-service providers to AI chip designers and consumer electronics manufacturers. Samsung expects shipments of next-generation HBM4 memory to expand significantly in the second half of the year while further strengthening its leadership in AI memory. It also said its foundry business is improving as demand rises for advanced process technologies and HBM base dies. Samsung's latest earnings therefore tell a story far larger than one record-breaking quarter. They illustrate an increasingly polarized economy in which one extraordinary winner carries the family while the rest struggle to keep pace — a corporate portrait of South Korea's emerging beggar-thy-family era. 2026-07-30 15:32:35 -
South Korea's Semiconductor Industry Bets Big on AI, Expanding Beyond Pyeongtaek Samsung Electronics and SK Hynix achieved impressive operating profit margins of 70% and 76%, respectively, in the second quarter. However, as of July 30, their stock prices have fallen nearly 40% and 50%, respectively, from their June peaks. Both companies and experts agree that a memory supply shortage will persist until 2028, but concerns about overproduction following their announcements of multi-trillion won expansions remain.Nevertheless, the die has been cast.In Pyeongtaek, dozens of tower cranes are continuously at work.Large construction vehicles are moving around the site of Samsung's semiconductor production facility, and the surrounding roads and commercial areas are buzzing with activity as the industrial city prepares for new production lines.In Yongin, the development of a large-scale semiconductor cluster is also accelerating. The domestic semiconductor production axis, previously concentrated in Giheung, Hwaseong, Pyeongtaek, and Icheon, is now expanding to include Yongin, Cheongju, Cheonan, and Onyang, reshaping the southern industrial corridor of the capital region into a nationwide semiconductor network.This transformation is driven by a boom in AI semiconductors. Samsung and SK Hynix have reported record performances based on the demand for memory for AI servers, prompting both companies and the government to embark on the establishment of large-scale production facilities and packaging hubs with a long-term vision of over a decade. However, much of the announced investment amounts are part of a long-term roadmap, and the actual timing and scale of execution may vary based on market conditions and corporate decisions.Investments in semiconductors are not only changing production capacity but also necessitating the establishment of extensive infrastructure. Operating a state-of-the-art fab requires a large supply of electricity and industrial water, transmission networks, roads, logistics facilities, and residential bases for skilled workers. This means that investments in AI semiconductors are effectively becoming national infrastructure projects that create new industrial cities and living areas.The government's so-called 'Chip Republic' initiative is also situated within this trend. The strategy aims to expand the semiconductor industry, which has been concentrated in the capital region, into a nationwide ecosystem by connecting advanced packaging in the Chungcheong region, materials, components, and equipment in the Yeongnam region, and new production bases in the Honam region.'AI Money Party' Has Already BegunJust one or two years ago, the expansion of AI investment was more about future expectations. However, the situation has changed.High Bandwidth Memory (HBM), a key component for AI servers, continues to face a global supply shortage, and SK Hynix, which was among the first to secure this market, is recording some of the highest profitability among major global semiconductor companies.Samsung Electronics is also beginning to reap the benefits of the AI supercycle, achieving its highest-ever performance in the semiconductor business, driven by a recovery in memory market conditions and increased AI demand.The market is already responding. Global tech giants like Microsoft, Meta, Amazon, OpenAI, and xAI are aggressively expanding investments in AI data centers, while semiconductor companies are racing to increase production capacity in anticipation of the ongoing AI infrastructure competition over the next several years.The semiconductor industry is now starting to view AI not as a 'future growth driver' but as 'the most lucrative industry at present.'This signifies that AI has entered a phase where it simultaneously boosts the performance of semiconductor companies and the national economy.A New War Showcased in San FranciscoRecently, an AI event held in San Francisco illustrated a complete shift in the nature of semiconductor competition.Samsung announced an expansion of its collaboration with Broadcom, covering HBM, foundry, and advanced packaging.This marks a departure from the era of merely supplying memory chips; a 'one-stop AI supply chain' competition encompassing design, production, and advanced packaging has begun.AI semiconductors are no longer just a single component.GPU, HBM, advanced packaging, ultra-fine processes, and power efficiency must all be interconnected to complete a single AI system.The competitive edge in the AI era is shifting from individual products to the entire supply chain.This change signifies important transformations for the South Korean semiconductor industry.Merely having memory competitiveness is no longer sufficient.To maintain global competitiveness, it is essential to integrate advanced packaging, foundry, materials, components, equipment, and AI data centers into a single industrial ecosystem.The government's push to create a 'semiconductor belt' rather than just 'semiconductor cities' is rooted in this understanding.Building Cities, Not Just FactoriesDuring a recent visit to Samsung's Pyeongtaek campus, construction of the P5 facility was in full swing.Dozens of tower cranes were operating simultaneously, and large dump trucks and ready-mix concrete vehicles were constantly in motion.From a distance, the construction site resembled not just a factory being built but rather a new city coming to life.It wasn't just Pyeongtaek.In Yongin, Samsung and SK Hynix are each developing massive semiconductor clusters.While the construction sites are still dusty, plans are in place for the world's largest AI semiconductor production facilities to be established here.However, it's not just factories being built.Infrastructure for industrial water supply, substations, transmission networks, roads, logistics facilities, and worker accommodations and dining options are also being developed.What is emerging is not just a semiconductor factory but an entire industrial city.AI is not just building factories; it is creating cities.Why the 'Chip Republic' Has Reached HonamThe core of the government's recently announced 'Chip Republic' project is not merely to increase the number of semiconductor factories.The goal is to expand the semiconductor industry, which has been concentrated in the capital region, into a nationwide AI industrial ecosystem.Previously, the southern Gyeonggi region connecting Giheung, Hwaseong, Pyeongtaek, and Icheon was essentially the entirety of South Korea's semiconductor industry.However, in the AI era, relying on a single factory is no longer sufficient for competitiveness.The government plans to develop the Chungcheong region as a hub for HBM production and advanced packaging, strengthen the materials, components, and equipment industries in the Yeongnam region, and establish a new semiconductor production belt in Honam. This strategy aims to integrate AI data centers, power networks, research and development (R&D), and logistics infrastructure to expand the industry structure concentrated in the capital region nationwide.This aligns with regional balanced development policies but is fundamentally an industrial strategy to respond to global AI supply chain competition.AI semiconductors cannot be completed by a single company or factory. A massive ecosystem involving memory, system semiconductors, advanced packaging, materials, components, equipment, power, and water must operate simultaneously.This is why the government is committed to creating a 'semiconductor belt' rather than just 'semiconductor cities.'Samsung and SK: Different Strategies Under the Same Investment PlanEven under the same 'Chip Republic' strategy, Samsung Electronics and SK Hynix face different challenges.SK Hynix has emerged as the biggest beneficiary of the AI memory era by securing a leading position in the HBM market. Market attention is focused on how long this advantage can be maintained. The biggest challenge is to expand production capacity in a timely manner amid surging HBM demand.In contrast, Samsung Electronics is a comprehensive semiconductor company that encompasses not only memory but also foundry and system semiconductors. In the AI era, it faces the dual challenge of recovering HBM competitiveness while simultaneously growing its advanced foundry and packaging businesses.Recent expansions of collaboration with Broadcom are also an extension of this strategy, reflecting a commitment to evolve into an AI supply chain company that integrates design, production, and packaging.While the investment directions of the two companies differ, the conclusion is the same: without building factories now, they risk losing market share in the next cycle.It's Not Just South Korea in the RaceTime is not solely on South Korea's side.The United States is expanding its AI semiconductor ecosystem centered around Nvidia, while Taiwan's TSMC is establishing itself as a key player in global AI chip production with its advanced process competitiveness. China is also accelerating its push for memory independence, backed by massive capital and a domestic market.In particular, China's largest DRAM manufacturer, CXMT, is using funds secured through its recent IPO to expand production capacity and invest in technology development, chasing after Samsung Electronics and SK Hynix. While there is currently a technology gap in the advanced HBM market, analysts suggest that CXMT is pursuing a phased strategy to secure a market base through expanded production of general-purpose DRAM before moving up to high-spec HBM.Lee Jong-hwan, a professor of system semiconductor engineering at Sangmyung University, stated, "If CXMT increases its DRAM production through expanded investment, it could pose a burden on Samsung Electronics and SK Hynix, which have maintained profitability based on supply shortages." He added, "The extent of the threat will depend on how quickly CXMT moves to expand investment and production."Professor Lee assessed the technology gap between CXMT and domestic companies as one to two years for general-purpose DRAM and about three years for HBM. However, he noted that as general-purpose DRAM competitiveness increases, CXMT could sequentially secure technologies for HBM DRAM and post-process packaging, potentially accelerating its catch-up speed.He emphasized, "Semiconductor investments take two to three years to yield actual production effects, so they must be made proactively. Both research and development and securing mass production and yield are essential for real corporate competitiveness." He further stated, "Korean companies must continue investing to maintain or widen the technology gap, as delaying investments could quickly narrow the gap with China."Ultimately, the competition in AI semiconductors has transformed into a race where South Korea, the United States, Taiwan, and China are simultaneously expanding their technology and production capacities. The current advantage in HBM will not automatically carry over. The ability to build factories on time, pass customer certifications, and secure stable mass production yields will likely determine the market winners in the future.AI is Changing Not Just Performance but the LandscapeAs I toured Pyeongtaek and Yongin, what struck me most was not the size of the factories but the fact that cities are being built around semiconductor plants.New roads are being laid, substations are being established, and industrial water supply networks are being connected. Partner companies and logistics firms are gathering, and restaurants and accommodation facilities are emerging, shifting people's living areas.AI is not merely an industry that changes the performance of semiconductor companies. It is creating cities, moving people, and redrawing the industrial map of the nation.The South Korean semiconductor industry, once concentrated in the capital region, is now expanding into Chungcheong and Honam. This change is not just about regional development; it is a strategic choice to survive in the global supply chain competition of the AI era.The semiconductor industry has long experienced cycles of boom and bust. No one can guarantee that the current large-scale investments will lead to success a decade from now. If the pace of AI infrastructure investment slows, the massive production capacity could become a burden.Nevertheless, the reasons South Korea finds it difficult to slow down investments are clear.In the AI era, factories must be built proactively, as waiting for confirmed demand to begin construction is too late. It takes years for a factory to be completed, pass customer certifications, and enter mass production. Anticipating future demand and securing production capacity in advance is the survival strategy for this industry.The 'Chip Republic' is no longer a vision for the future.It is already becoming a reality in the construction sites of Pyeongtaek and Yongin, in the packaging strategies of Chungcheong, and in the plans for new clusters in Honam.* This article has been translated by AI. 2026-07-30 15:28:00 -
Amorepacific rides K-beauty boom to strongest Q2 in years SEOUL, July 30 (AJP) - Amorepacific Group reported sharply higher second-quarter earnings on Thursday as robust growth in North America, Europe and Japan offset weakness in Greater China, underscoring the South Korean cosmetics maker's accelerating shift toward a broader global business footprint. The company posted consolidated revenue of 1.25 trillion won and operating profit of 122.8 billion won for the April-June period, up 14.6 percent and 53.3 percent, respectively, from a year earlier. It also recorded a double-digit operating margin for a second consecutive quarter. The earnings were driven by strong overseas demand, with North America, Europe, the Middle East and Africa (EMEA), and Japan delivering broad-based growth across both online and offline channels. Higher profitability from fast-growing brands also helped lift margins. At its flagship Amorepacific unit, overseas revenue jumped 28 percent from a year earlier, while overseas operating profit nearly doubled, rising 99 percent. The company said North America and EMEA were the biggest growth drivers, supported by an expanding brand portfolio and improving profitability. In North America, Aestura posted triple-digit sales growth on Amazon and Sephora, led by its Atobarrier 365 Cream, while COSRX continued strong momentum through Amazon and TikTok Shop. Innisfree also reported solid gains on the back of its Green Tea skincare line and sun care products. Europe also delivered strong results, with COSRX's Ultra Light Invisible Sunscreen topping Amazon's beauty category in Germany and the sunscreen category in the United Kingdom. The company also expanded into additional European markets while strengthening partnerships with Sephora. Japan remained another bright spot. Laneige extended its growth through new product launches and broader distribution, while COSRX achieved record sales during Qoo10 Japan's Mega Sale campaign. Across Southeast Asia, India and Australia, revenue also increased, although sales in Greater China declined as the company continued restructuring its distribution channels and focusing on higher-quality sales. Domestically, Amorepacific benefited from continued strength in luxury skincare, derma cosmetics and hair care. Sulwhasoo and Hera maintained leadership in Korea's premium beauty market, while online sales and the company's multi-brand store channel posted double-digit growth. The company said it would continue investing in key global markets under its "Create New Beauty" strategy, focusing on expanding its international business, strengthening its multi-brand portfolio and accelerating AI-driven business transformation. 2026-07-30 14:27:56 -
LG Electronics confirms record Q2 on premium power SEOUL, July 30 (AJP) - LG Electronics confirmed record second-quarter results on Thursday, driven by strong home appliance sales, resilient vehicle component demand and growing subscription revenue despite geopolitical uncertainties and softer consumer spending. The South Korean electronics maker posted consolidated revenue of 23.83 trillion won ($16.52 billion) and operating profit of 1.58 trillion won ($1.09 billion) for the April-June period, up 14.9 percent and 147 percent, respectively, from a year earlier. Both figures marked the highest-ever results for a second quarter. LG said premium home appliances, strong demand in emerging markets and continued growth in its vehicle solutions business helped offset external challenges, including the conflict in the Middle East. Higher sales of premium products, improved cost competitiveness and a one-off tariff refund related to U.S. exports also boosted profitability. Business-to-business revenue reached 6.5 trillion won, accounting for 36 percent of companywide sales excluding LG Innotek, while subscription-based services generated 660 billion won, reflecting continued overseas expansion. The Home Appliance Solution division posted quarterly revenue of 7.08 trillion won, surpassing the 7 trillion-won mark for the first time, with an operating margin approaching 10 percent. LG attributed the performance to strong sales of both premium and mass-market products, supply chain optimization and subscription services that continue to generate recurring revenue. Its Vehicle Solution business recorded quarterly revenue of 3.03 trillion won and operating profit of 191.2 billion won, both record highs for a second quarter, supported by a growing order backlog and an improved product mix. The Media Entertainment business also improved on stronger sales of OLED and QNED televisions and continued growth of its webOS platform, while the Eco Solution division benefited from robust overseas air-conditioner demand and continued investment in AI data center cooling technologies. Looking ahead, LG said it expects demand to remain subdued in the third quarter but plans to strengthen profitability by focusing on emerging markets, expanding premium product sales and accelerating growth in businesses such as robotics and AI data center cooling solutions. 2026-07-30 14:16:03 -
SK hynix scraps paperwork in hunt for AI-native talent SEOUL, July 30 (AJP) -Generous bonuses and an extraordinary AI boom are not the only appeals that have made SK hynix South Korea's most sought-after employer for a second consecutive year, as the chipmaker continues to break hiring norms in search of AI-native talent. SK hynix said Thursday it will scrap the traditional self-introduction essay and replace brief interviews with half-day competency assessments for new graduate recruitment beginning next month, introducing its biggest hiring overhaul in years as chipmakers compete for a new generation of AI engineers. Applications for the rolling recruitment cycle will be accepted from Aug. 20 to 26 for positions in chip design, device engineering, research and development, manufacturing processes and production technology. Openings are available at its major sites in Icheon, Cheongju, Bundang and Seoul. The changes come a month after SK hynix abolished academic qualification requirements, allowing applicants to apply regardless of age or educational background. Instead of the conventional 20- to 30-minute interview, candidates will spend half a day completing practical assignments and participating in in-depth interviews. Recruiters will assess not only technical expertise but also AI application skills, logical reasoning, humanities-based thinking and the ability to solve engineering problems from first principles. The application itself is also changing. SK hynix has scrapped the conventional self-introduction essay in favor of a format requiring candidates to explain their AI capabilities and semiconductor expertise. Rather than polished resumes, the company said it wants applicants who can use AI to solve problems on semiconductor production lines. SK hynix is also moving beyond campus recruiting. Instead of focusing on a handful of universities, it will hold recruitment sessions in Seoul, Cheongju, Daegu and Gwangju, opening participation to aspiring engineers and young people interested in semiconductors regardless of where they study. Later this year, the company will launch an AI hackathon in which participants develop software or algorithmic models to solve semiconductor manufacturing challenges within a limited time. Outstanding participants will receive fast-track access to interviews without going through the document screening stage. The hiring overhaul echoes SK Group Chairman Chey Tae-won's vision for the AI era. Chey has argued that future competitiveness will depend less on credentials than on what he calls "thinking muscles" — the ability to ask fundamental questions, cross disciplinary boundaries and design systems in which humans and AI work together. The changes come as SK hynix enjoys the biggest windfall in its history from the AI memory boom. This week, the company reported another record quarterly profit, cementing its lead in high-bandwidth memory used in Nvidia's AI accelerators. SK hynix is betting that its next competitive edge will come as much from people as from silicon, a HR official said. 2026-07-30 13:10:17 -
Korean chipmakers confirm stunning Q2, but investors price in the peak SEOUL, July 30 (AJP) - South Korea's two memory giants confirmed their supremacy in back-to-back second-quarter earnings releases, generating a combined operating profit of about 150 trillion won ($108 billion), equivalent to roughly 6 percent of the country's entire 2025 nominal GDP, with margins in the 70 percent range that few manufacturers could dream of. Samsung Electronics and SK hynix delivered the same assurance: the extraordinary combination of tight supply, explosive artificial-intelligence demand and multiyear customer commitments could last for at least two more years. Investors remained unconvinced. SK hynix ended Thursday at 1,298,000 won, down about 25 percent this week and more than 56 percent from its June 26 peak of 2,987,000 won. Samsung Electronics closed at 207,000 won, about 20 percent lower on the week and nearly 45 percent below its June 19 high of 374,500 won. The selloff revealed the central contradiction of Korea's AI memory boom. The chipmakers are earning profits at a scale rarely seen in global manufacturing, but markets are no longer rewarding the records. Investors are instead asking how long margins near 70 percent can survive before rivals expand supply, customers resist higher prices or the AI investment cycle begins to slow. Samsung Electronics on Thursday reported a record operating profit of 89.2 trillion won from its chipmaking operations in the second quarter, translating into an operating margin of about 70 percent. The result came one day after SK hynix posted an industry-leading margin of 76.1 percent, the highest among major global chipmakers and ahead of Taiwan Semiconductor Manufacturing Co. and Micron Technology. Together, the earnings underscored South Korea's dominance in AI memory, where surging demand for high-bandwidth memory has transformed its two largest semiconductor manufacturers into the industry's biggest profit generators. Samsung's Device Solutions division posted operating profit of 89.2 trillion won, compared with 8.1 trillion won a year earlier, while revenue surged to 127.5 trillion won on record demand for DRAM and NAND products. Companywide, Samsung confirmed quarterly revenue of 171.5 trillion won and operating profit of 89.5 trillion won, both the highest in its history. A stronger U.S. dollar added about 3.1 trillion won to operating profit from the previous quarter, mainly benefiting component businesses. Research and development spending reached a record 16 trillion won as the company continued to invest in advanced memory, foundry processes and packaging technologies. Samsung said its memory business delivered another record quarter by responding to strong server demand driven by the spread of agentic AI and the continued expansion of hyperscale data centers. The company increased shipments of HBM4 and became the first in the industry to ship HBM4E samples, strengthening its claim to technological leadership after trailing SK hynix during the initial stages of the HBM boom. Its System LSI business posted record first-half revenue despite softer overall demand, supported by higher sales of mobile processors and image sensors. The foundry business also improved as demand increased for HBM base dies and products from U.S. customers. Yet the broader industry picture remained even more striking. SK hynix's 76.1 percent operating margin reflected the premium pricing and supply discipline generated by its early lead in HBM, the fastest-growing and most profitable segment of the memory industry. Samsung, meanwhile, is using its broader scale across DRAM, NAND, foundry and advanced packaging to narrow the gap and secure a larger share of the AI infrastructure market. The contrasting share-price reaction showed how dramatically investor expectations have shifted. Both companies argued that the current cycle differs fundamentally from previous memory booms. During its earnings conference call, Samsung said explosive investment in AI infrastructure, agentic AI and sovereign AI projects would keep demand ahead of supply through at least 2028, even as chipmakers accelerate capacity expansion. The company said the long lead times required to build fabrication plants, install advanced equipment and expand packaging capacity would prevent supply from catching up quickly with demand. That outlook suggests a structural shift rather than another conventional one- or two-year memory cycle. Samsung said customers are increasingly signing multiyear supply agreements and making advance payments to secure future capacity, practices that were uncommon in earlier upcycles when new factories eventually flooded the market and drove prices lower. The company has secured long-term supply agreements with five global hyperscale customers and is in the final stages of talks with another five AI-related clients. Once those negotiations are completed, Samsung expects multiyear contracts to cover 60 to 70 percent of its planned medium-term production capacity. The shift could weaken the memory industry's traditional boom-and-bust pattern. For decades, DRAM and NAND prices swung sharply between scarcity and oversupply because manufacturers expanded production aggressively during booms, only to face collapsing prices once new capacity entered the market. Longer customer commitments, advance payments and years-long construction timelines could instead lock in demand and keep capacity structurally tight through much of the AI infrastructure expansion. For Samsung Electronics and SK hynix, that would improve earnings visibility and reinforce South Korea's central role in the global AI supply chain. Samsung expects HBM4 shipments to expand significantly in the second half, while its foundry business should benefit from growing demand for advanced processing and HBM base dies. SK hynix is also seeking to protect its early lead through next-generation HBM products and deeper collaboration with major AI chip customers. The durability of their dominance, however, will depend on how quickly rivals catch up in HBM, advanced packaging and memory production, as well as whether hyperscale technology companies can continue financing AI infrastructure at the current pace. 2026-07-30 08:58:00 -
LG Electronics offers interim dividend and completes buyback SEOUL, July 29 (AJP) - LG Electronics said Wednesday its board had approved an interim cash dividend of 500 won per common and preferred share and completed a previously announced 100 billion won share buyback as part of its shareholder return policy. The company set Aug. 13 as the record date for the interim dividend, with payments scheduled for Aug. 28. The total dividend payout amounts to about 89.7 billion won. LG Electronics said it has maintained a minimum annual dividend of 1,000 won per share since 2024 and introduced interim dividends to provide shareholders with more stable cash returns. The company also said it had completed the repurchase of 100 billion won worth of treasury shares announced in January, acquiring 588,589 common shares and 141,840 preferred shares. The repurchased shares will be cancelled within this year to enhance shareholder value. The measures are part of LG Electronics' shareholder return plan announced late last year, under which the company pledged to return a total of 200 billion won to shareholders over two years. It plans to implement an additional 100 billion won shareholder return program next year. 2026-07-29 15:53:15 -
SK hynix is today's chip profit king, But what next? SEOUL, July 29 (AJP) - SK hynix achieved something no major semiconductor company has done before: it became the world's most profitable chipmaker – albeit with little fanfare. Its record-breaking 76.1 percent operating margin in the second quarter surpassed those of Taiwan Semiconductor Manufacturing Co. (TSMC) and Micron Technology, demonstrating how an early bet on artificial intelligence memory has turned the South Korean company into the industry's earnings powerhouse. Yet investors focused instead on what it failed to deliver. Shares plunged more than 16 percent during Wednesday session -- their steepest one-day decline on record -- after operating profit fell just short of lofty market expectations, despite nearly doubling from the company's previous quarterly record set only three months earlier. The stock was at 1,354,000 as of 2:00 p.m. down more than half from its all-time high of 2,987,000 won reached on June 25. The great selloff underscored how expectations for AI winners have risen almost as quickly as their profits. SK hynix generated a 76.1 percent operating margin in the April-June quarter, comfortably ahead of TSMC's 60.3 percent in its June quarter and Micron's roughly 52 percent on a non-GAAP basis in its latest reported quarter. Samsung Electronics which reports its final second-quarter results also is expected to deliver a chip-making profit margin of more than 60 percent. All the frontier chipmakers have benefited from the AI infrastructure boom, but their profit engines are fundamentally different. TSMC dominates contract manufacturing for advanced processors designed by customers such as Nvidia and Apple. Micron has expanded its position in high-bandwidth memory while maintaining broad DRAM and NAND flash businesses. SK hynix singularly has concentrated on the most profitable segment of the AI supply chain: HBM, the premium memory stacked alongside AI accelerators that has become one of the industry's biggest bottlenecks. HBM commands premium pricing because of its technological complexity, advanced packaging requirements and close collaboration with AI chip designers throughout development. Unlike commodity DRAM, where prices largely fluctuate with supply and demand, HBM pricing is shaped by technology leadership and scarcity. That distinction is critical. Profitability in HBM depends less on manufacturing efficiency than on being first to commercialize each new generation while supply remains constrained. SK hynix widened that advantage by becoming the first company to mass-produce HBM3E and beginning volume shipments of next-generation HBM4 during the second quarter. It has also completed sample deliveries of HBM4E and remains on track for mass production in 2027. Being first to scale a new HBM generation allows a supplier to establish pricing before rivals qualify competing products. With Samsung Electronics and Micron still progressing through qualification for their latest HBM offerings, SK hynix has operated in a market with considerably less direct competition than the industry's "three-way HBM race" often implies. The company's advantage extends beyond manufacturing. HBM is not purchased from a standard price list. Instead, it is co-developed with AI accelerator makers—chiefly Nvidia—months or even years before commercial production, tied closely to each processor roadmap. Those relationships create high switching costs and long-term supply commitments, making HBM revenue considerably more predictable than conventional DRAM, where customers can change suppliers relatively easily and prices are driven largely by spot-market conditions. Defending the AI investment narrative During Wednesday's earnings conference call, SK hynix dismissed concerns that improving AI model efficiency could reduce demand for AI infrastructure. "We view these developments not as a slowdown in AI investment, but as a transition toward improving the utilization and monetization of AI infrastructure built over the past several years," the company said. The company expects spending by hyperscale cloud providers to remain robust beyond next year, arguing that temporary delays caused by power shortages or slower data-center construction will not alter the long-term trajectory of AI investment. Reflecting that confidence, SK hynix reaffirmed plans to invest more than 40 trillion won this year to expand manufacturing capacity. "Our capacity expansion is based on demand visibility secured through long-term customer partnerships and will be carried out in stages with investment efficiency in mind," the company said. After rallying nearly 400 percent over the past two years, SK hynix had become one of the market's highest-conviction AI trades. Investors were pricing in continued margin expansion and another earnings beat. Even a modest miss against consensus was enough to trigger profit-taking, despite the company posting one of the strongest quarterly results ever recorded by a semiconductor manufacturer. Some analysts also believe the market is beginning to look beyond today's record margins. Memory remains the semiconductor industry's most cyclical business, and extraordinary profitability inevitably attracts additional investment. As Samsung and Micron qualify HBM4 and HBM4E products and industry capacity expands, investors are increasingly debating how long today's scarcity-driven pricing can last. The durability question For decades, memory profitability rose and fell with commodity pricing cycles. In the AI era, however, earnings are increasingly determined by leadership in specialized products such as HBM, where technology, customer relationships and ecosystem integration matter as much as manufacturing scale. Whether SK hynix can sustain its exceptional lead is the next question. Unlike TSMC's foundry business, whose moat has been built over decades of process-node leadership, SK hynix's HBM advantage is inherently more cyclical. Its lead is measured in product generations rather than decades, making investors increasingly focused on when rivals will catch up rather than how far ahead the company is today. 2026-07-29 14:58:11 -
SK hynix dismisses AI slowdown concerns with massive capacity expansion plan SEOUL, July 29 (AJP) - SK hynix brushed aside growing concerns over a slowdown in artificial intelligence (AI)-related investment on Wednesday, saying demand from major cloud providers would remain strong beyond next year as it reported record quarterly earnings and unveiled plans to spend nearly 50 trillion won (US$35 billion) on capacity expansion. The world's second-largest memory chipmaker reported a record operating profit of 60.54 trillion won for the April-June quarter, up 68 percent from the previous quarter, while revenue rose 36 percent to an all-time high of 79.21 trillion won, driven by strong demand for high-bandwidth memory (HBM) used in AI accelerators. Its operating margin reached a record 76.1 percent. Despite the record earnings, SK hynix shares were down 18.8 percent at 1,258,000 won as of 1:43 p.m. in Seoul, as investors weighed the results against mounting concerns over China's rapidly advancing semiconductor industry and elevated market expectations. During a conference call following the earnings release, SK hynix said concerns over slowing AI infrastructure investment were overstated, arguing that major cloud service providers continue to view AI spending as essential to strengthening their core businesses. "We view these developments not as a slowdown in AI investment, but as a transition toward improving the utilization and monetization of AI infrastructure built over the past several years," the company said. The company said improvements in AI model efficiency should broaden AI adoption rather than reduce memory demand, as wider deployment of AI applications is expected to increase overall memory consumption. "AI infrastructure investment is expected to remain solid beyond next year," it said, adding that temporary delays in some projects due to power supply constraints or slower data-center construction would not alter the long-term growth trajectory. SK hynix also reaffirmed its aggressive investment plans, saying capital expenditure this year is expected to reach the high-40 trillion won range, one of the company's largest annual investment programs, as it expands production capacity to meet structurally growing AI memory demand. "Our capacity expansion is based on demand visibility secured through long-term customer partnerships and will be carried out in stages with investment efficiency in mind," the company said, adding that the phased investment approach would help prevent oversupply. The company said its investment plan reflects confidence in long-term customer demand backed by multi-year supply agreements, while production expansion will remain flexible depending on confirmed customer demand and investment efficiency. SK hynix also said it has begun volume shipments of 12-layer HBM4, completed sample deliveries of HBM4E for next-generation AI chips and remains on track for mass production in 2027, reinforcing its technology leadership in premium AI memory products. Despite the sharp share-price decline, the company maintained that long-term demand from hyperscale cloud providers remains intact and said long-term supply agreements with major customers provide sufficient visibility to support continued investment in next-generation AI memory. 2026-07-29 11:33:00