China Bought $44 Billion Worth Of Samsung Chips, Surpassing US
Contents
Many people know Samsung primarily for its smartphone business. However, the company is actually a giant conglomerate present in multiple segments of the tech industry. Samsung is a global supplier of various types of chips, with China among its clients. Now, a report has revealed that China purchased 44 billion dollars worth of chips from Samsung in 2023—more than the US.
The report refers to Samsung’s chip sales figures for 2023. It reflects that China purchased more chips from the South Korean giant than the United States did that year. Apparently, the Chinese government’s economic stimulus initiatives have a lot to do with this.
China’s economic stimulus initiative led to a 44 billion dollars purchase of Samsung chips
For some time now, the Chinese government has been implementing economic stimulus policies. The measure sought to increase demand for tech products, including smartphones, household appliances, and others. It also sought to encourage companies to modernize their factories with more advanced equipment. To achieve this, the government injected the equivalent of $20 billion into the market. The aggressive strategy of local government was quickly reflected in both the consumer market and the tech industry.
Samsung shared a report detailing its chip sales in recent years. The document reveals that chip orders from China increased by an impressive 53.9% in 2023 compared to 2022. This coincides with the implementation of economic stimulus measures in the country. Tech firms took advantage of the resources to obtain newer chips, which particularly benefited suppliers such as Samsung and SK Hynix.
Samsung chip sales to China in 2023 totaled 64.93 trillion won (approximately $44.6 billion). For reference, the 2022 figures only reached the equivalent of $28.9 billion. Meanwhile, the United States purchased chips from Samsung worth $42.1 billion in 2023.
The firm doesn’t have a huge presence as a smartphone brand in China. The company hasn’t managed to make its devices resonate with that market as it has in other countries around the world. However, it remains a major supplier of business hardware. The company offers memory chips (NAND and LPDDR), motherboards, and display drivers.
Samsung also sells some specific models of HBM chips in China. If you’re not aware, HBM (High Bandwidth Memory) chips are key for artificial intelligence hardware. Therefore, they face export restrictions from the United States. The models available in China tend to be much less capable than those in other markets.
A potential escalation of US trade restrictions could affect Samsung
That said, it’s possible that Samsung will find itself in the crossfire between the US and China. Currently, the company can sell chips to companies in the Asian country. However, the situation could change in the future if the United States decides to tighten trade restrictions. This would affect not only Samsung but also a direct rival like SK Hynix.
