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Samsung Elec Expects $100 Mln or More Sales from Advanced Chip Packaging Business 

A flag bearing the logo of Samsung flutters in front of its office building in Seoul, South Korea, October 25, 2020. (Reuters)
A flag bearing the logo of Samsung flutters in front of its office building in Seoul, South Korea, October 25, 2020. (Reuters)
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Samsung Elec Expects $100 Mln or More Sales from Advanced Chip Packaging Business 

A flag bearing the logo of Samsung flutters in front of its office building in Seoul, South Korea, October 25, 2020. (Reuters)
A flag bearing the logo of Samsung flutters in front of its office building in Seoul, South Korea, October 25, 2020. (Reuters)

Samsung Electronics expects $100 million or more of revenue from its next batch of advanced chip-packaging products this year, co-CEO Kye-Hyun Kyung said on Wednesday.

Samsung set up advanced chip packaging as a business unit last year, and Kyung said he expects the results of Samsung's investment to come out in earnest from the second half of this year.

Kyung's remarks were made during Samsung's annual general shareholders' meeting.

Samsung's memory chip business seeks to achieve a greater profit share than its market share this year, Kyung said.

Samsung's market share in DRAM chips, used in tech devices, reached 45.5% in the fourth quarter last year, according to data provider TrendForce.

To do this, Samsung seeks to secure a competitive advantage in high-end memory chips required by booming artificial intelligence demand, including mass producing a 12-stack version of high-bandwidth memory (HBM) chips called HBM3E.

For a future generation of HBM chips called HBM4, likely to be released in 2025 with more customized designs, Samsung will take advantage of having memory chips, chip contract manufacturing and chip design businesses under one roof to satisfy customer needs, Kyung said.

Answering a shareholder question on Samsung's recent setback in the current HBM market compared to rival SK Hynix , Kyung said: "We're better prepared to prevent that from happening again in the future."

Samsung Electronics shares rose as much as 6.04% on Wednesday, and are set for their highest one-day jump since early September after Nvidia CEO Jensen Huang said the AI semiconductor leader is qualifying Samsung's HBM chips for use.

Samsung expects tangible results soon from other memory products being developed for use in AI, including compute express link (CXL) and processing-in-memory (PIM) products, Kyung added.

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Technology

Google Offers to Loosen Search Deals in US Antitrust Case Remedy

The Google sign is shown on one of the company's office buildings in Irvine, California, US, October 20, 2020. REUTERS/Mike Blake
The Google sign is shown on one of the company's office buildings in Irvine, California, US, October 20, 2020. REUTERS/Mike Blake
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Google Offers to Loosen Search Deals in US Antitrust Case Remedy

The Google sign is shown on one of the company's office buildings in Irvine, California, US, October 20, 2020. REUTERS/Mike Blake
The Google sign is shown on one of the company's office buildings in Irvine, California, US, October 20, 2020. REUTERS/Mike Blake

Alphabet's Google proposed on Friday a loosening of its agreements with Apple and others to set Google as the default search engine on new devices, in a bid to address a US ruling that it unlawfully dominates online search.

The proposal is muchu narrower than the government's push to make Google sell its Chrome browser, which Google called a drastic attempt to intervene in the search market.

Google urged US District Judge Amit Mehta in Washington to move cautiously in deciding what the company must do to restore competition, after his ruling that the company holds an illegal monopoly in online search and related advertising. Courts have cautioned against imposing antitrust remedies that chill innovation, Google said in court papers.

That is especially true "in an environment where remarkable artificial intelligence innovations are rapidly changing how people interact with many online products and services, including search engines," Google said.

While Google plans to appeal that ruling at the end of the case, it says the upcoming "remedies" phase should focus on its distribution agreements with browser developers, mobile device manufacturers, and wireless carriers.

The judge found the agreements give Google a "major, largely unseen advantage over its rivals" and result in most devices in the US coming pre-loaded with Google's search engine.

The agreements are hard to exit, the judge said, especially for Android manufacturers, which must agree to install Google search in order to include Google's Play Store on their devices.

To fix that, Google could make them non-exclusive and, for Android phone manufacturers, unbundle its Play Store from Chrome and search, the company said in its proposal.

Google would allow browser developers that agree to set its search engine as the default to revisit that decision annually under the proposal.

REVENUE SHARING

Unlike the government's proposal, Google's would not end revenue sharing agreements, which pass a portion of ad revenue Google makes from search to the device and software companies that present it as the default search engine.

Independent browser developers including Mozilla, which makes Firefox, have said the funds are crucial to their operations. Apple received an estimated $20 billion from its agreement with Google in 2022 alone.

Kamyl Bazbaz, spokesperson for search engine competitor DuckDuckGo, said the proposal attempts to maintain the status quo.

"Once a court finds a violation of competition laws, the remedy must not only stop the illegal conduct and prevent its recurrence, but restore competition in the affected markets," he said.

Google's proposal sets the stage for a trial Mehta will hold in April, where the US Department of Justice and a coalition of states will seek to show the need for wide-ranging remedies, including making Google sell off Chrome and potentially its Android mobile operating system.

The government plans to call witnesses from OpenAI, AI search startup Perplexity, and Microsoft, according to court papers.

Prosecutors also want Google to stop paying to be the default search engine, and cease investments in search rivals and query-based AI products, and license its search results and technology to rivals.

The proposals aim to spur innovation in online search, where Mehta found Google's overwhelming market share keeps competitors from gathering the search data needed to improve their products, and prevent Google from extending its dominance in search to AI.