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Lucid Joins 'Made in Saudi' Program

Lucid is the first Original Equipment Manufacturer (OEM) in the automotive sector to receive this distinguished logo - SPA
Lucid is the first Original Equipment Manufacturer (OEM) in the automotive sector to receive this distinguished logo - SPA
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Lucid Joins 'Made in Saudi' Program

Lucid is the first Original Equipment Manufacturer (OEM) in the automotive sector to receive this distinguished logo - SPA
Lucid is the first Original Equipment Manufacturer (OEM) in the automotive sector to receive this distinguished logo - SPA

Lucid Motors, a leading electric vehicle manufacturer, has joined the Made in Saudi program, earning the right to use the "Made in Saudi" logo on its products, a symbol of quality, excellence, and customer trust reflecting the Kingdom's dedication to establishing itself as a global leader in innovative manufacturing.
Lucid is the first Original Equipment Manufacturer (OEM) in the automotive sector to receive this distinguished logo. This feat underscores Lucid's ability to produce world-class electric vehicles with Saudi expertise and highlights its role in advancing the Kingdom's automotive industry.
In a statement, Minister of Industry and Mineral Resources Bandar Alkhorayef emphasized that Lucid's inclusion in the Made in Saudi program as the first car manufacturer to feature the "Made in Saudi" logo signifies the Kingdom's strategic transformation towards establishing a comprehensive ecosystem for the electric vehicle sector.

According to SPA, this aligns with the objectives of the National Industrial Strategy, which focuses on empowering key sectors and attracting high-quality investments in advanced industries.
Alkhorayef emphasized that Saudi Arabia has become a key center for producing electric vehicles, supported by modern infrastructure, attractive incentives, and a skilled workforce. He stressed that the presence of major companies like Lucid bolster the Kingdom's position as a global hub for future industries, boosting local content, non-oil exports, and knowledge transfer.
The ministry is committed to creating an investment environment that supports leading companies and enables them to contribute to industrial transformation and innovation, in line with the Kingdom's vision for a sustainable future driven by modern technologies, he added.
Lucid's inclusion in the Made in Saudi program, overseen by the Saudi Export Development Authority, aligns with the program's goals to enhance the appeal of the Saudi industrial sector, boost local product consumption, drive local and foreign investments, support local companies in expanding globally, increase Saudi non-oil exports, and promote economic sustainability.

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Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
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Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)

Samsung Electronics' preliminary fourth-quarter operating profit missed estimates by a large margin, with the South Korean tech giant hit hard by extra costs as it works towards providing high-end chips to Nvidia.

Its earnings were dented by rising research and development costs and the ramp-up of manufacturing capacity for advanced semiconductors, the company said in a statement. Slowing demand for conventional memory chips used in PCs and mobile phones also weighed on earnings, it added.

The world's largest memory chip, smartphone and TV maker expects to log an operating profit of 6.5 trillion won ($4.5 billion) for the three months ended Dec. 31, well below an LSEG SmartEstimate of 7.7 trillion won.

The expected profit is 131% higher than the same period a year earlier, but down 29% from a disappointing third quarter. Preliminary revenue came in at 75 trillion won, slightly lower than analysts' estimates.

Rival SK Hynix is Nvidia's main supplier of high-bandwidth memory (HBM) chips used in artificial intelligence graphics processing units (GPUs) whereas Samsung has struggled to meet Nvidia's requirements.

Nvidia CEO Jensen Huang told reporters in Las Vegas on Tuesday that Samsung has to "engineer a new design" to supply HBM chips to his company, adding that "they can do it and they are working very fast," Korea JoongAng Daily reported.

Samsung said at the time of its third-quarter earnings that it was making progress in supplying HBM chips to Nvidia but has not made any public updates since then.

Greg Noh, an analyst at Hyundai Motor Securities, said Samsung's profit was possibly eroded by one-off costs as well as disappointing chip and display earnings.

Samsung finished 3.4% higher with analysts attributing the gain to the sense that the company's woes had already been factored in and were unlikely to get worse.

"There are concerns about Samsung's major businesses continuing to lose competitiveness. But chip demand may have bottomed already," said Lee Min-hee, an analyst at BNK Investment & Securities, adding that smartphone demand in China may gradually improve.

Shares of Samsung, South Korea's biggest company by market value, slumped 32% last year, far more than a 10% decline for the wider market.

By contrast, SK Hynix is expected to post record earnings for the fourth quarter and its stock surged 23% last year.

Samsung will release detailed fourth-quarter results on Jan. 31.

RISING COMPETITION

Samsung said fourth-quarter earnings also fell for its division that designs and manufactures logic chips, hit by slower mobile phone demand, lower utilization rates at its factories and higher research and development costs.

The division may have widened losses to about $1.5 billion in the fourth quarter from about $960 million in the preceding quarter due to struggles to increase production yields, analysts said.

Earnings for its devices business, which includes mobile phones, TVs and household appliances, dropped as it has been some time since new mobile phone models were launched and because competition has increased, Samsung said.

Analysts said its mobile division earnings may have declined year on year due to lower sales for its premium foldable phones.

Slowing demand likely offset the positive impact of weakness in the local currency which boosts earnings from overseas.

The South Korean won dropped to its weakest level in 15 years in December after President Yoon Suk Yeol's martial law decree triggered political turmoil. It was also hurt by US President-elect Donald Trump's pledges of higher tariffs on imports.