Samsung Electronics (005930 KS) exec. says robust chip demand is to continue in Q2 despite Middle East conflict, focus on securing future growth through M&As; Q1 Capex KRW 11.2tln
- Memory capex is to rise sharply this year.
- Expects substantial increase in capex in 2026.
- Chip supply shortage to persist in H2.
- Supply shortage intensified in Q1.
- Secured inventory of gas from the Middle East.
- Conflict has not caused production disruption.
- Risks of rising logistics costs are rising due to the conflict.
- Setting up scenarios for a prolonged war.
- Chip supply falls far short of customer's demand.
- Chup supply-demand gap is to widen in 2027 from 2026.
- Plan to invest in the Robotics companies if needed.
- HBM revenue to more than triple this year from 2025, with capacity sold out.
Context
Samsung's projection of robust chip demand amidst ongoing geopolitical tensions is a positive signal for future growth. Despite risks from rising logistics costs due to the Middle East conflict, their strategy to secure inventory and future M&A plans reflect a proactive approach to sustaining high demand and securing market share. This indicates strong confidence in the semiconductor sector, positioning Samsung favorably against competitors.
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