Samsung's semiconductor division faces challenges in securing significant U.S. clients despite large investments, leading to a reliance on Chinese customers. Export value to China increased by 54% from 2023 to 2024 due to heightened demand for AI chips, driven by U.S. export controls. A notable sale involved over three years' supply of logic dies to Baidu's Kunlun subsidiary. While Samsung invests $40 billion in Texas facilities, trade tensions with China complicate relations, and competition from SK Hynix in the AI chip market further pressures its market position.
Samsung and China need each other, said CW Chung, joint head of Apac equity research at Nomura. Chinese customers have become more important for Samsung, but it won't be easy to do business together.
The increasing importance of its China sales to Samsung comes as it navigates growing trade tensions between Washington and Beijing over the development of sensitive technologies.
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