Samsung to buy TCL CSOT stake from its own display unit for US$960 million

A South Korean court upheld a 18.6 billion won fine against Broadcom for allegedly coercing Samsung Electronics (005930) into an unfavorable contract. The Korea Fair Trade Commission found Broadcom abused its market dominance, threatening to halt component supplies. Samsung claimed damages of $326.3 million. Broadcom's appeal was rejected, confirming the lower court's ruling.

Samsung Electronics reported a record quarterly profit of 107.4 trillion won, driven by its chip division (DS), while its device division (DX) posted a loss. The earnings gap is causing internal tensions, with divisions operating separately and employees receiving different bonuses. The company faces challenges in unifying its strategy and managing pay disparities.

Samsung Electronics reported Q3 2026 revenue of KRW 195.3T (USD 146B) and operating profit of KRW 107.4T (USD 80B), driven by strong demand for AI memory chips. The semiconductor business, particularly HBM4, was the primary contributor. However, smartphone margins are under pressure due to high memory prices, with the Mobile division reporting an operating loss. Samsung expects continued AI investment to sustain memory demand.

South Korea's President Lee Jae Myung proposed a 21.3 trillion won ($16 billion) budget for AI and semiconductor projects by 2027, nearly double the current year's funding. The plan includes 4.7 trillion won for AI development and aims to create a domestically developed AI model. The total budget proposal is 821 trillion won, a 12.8% increase from the current year. Samsung Electronics and SK hynix, major players in the memory-chip industry, are expected to benefit from this investment.

Samsung Electronics and SK Hynix have signed long-term supply agreements (LTAs) for memory chips with multiple clients, driven by AI demand. Samsung has 10 signed contracts and is negotiating with 10 more, aiming for 60-70% of production capacity under LTAs by 2030. SK Hynix has secured contracts with 14 clients, including major cloud providers, and has sold out production capacity through 2029.

South Korea's exports may hit $1 trillion this month, driven by semiconductors. However, Intel's weak guidance and cash flow concerns have raised doubts about AI and chip demand, impacting Big Tech stocks. Samsung and SK hynix are currently benefiting from the semiconductor cycle, but a downturn could significantly affect Korea's economy.