KB Securities Sees Samsung, SK hynix Combined Profit Topping 1,000 Trillion Won

Samsung Electronics (005930.KS) received approval in South Korea for its Galaxy Buds3 Pro and Galaxy Buds4 Pro to function as medical devices, measuring hearing and amplifying sound. The 'Hearing Check' and 'Hearing Care' features will be rolled out via software updates starting early next year, following FDA approval in the U.S. The features aim to assist adults with mild to moderate hearing loss, with results viewable in the Samsung Health app.

SK Hynix's U.S. subsidiary faces regulatory hurdles for a memory chip factory. Netflix launched an AI tool for content matching. TrendForce says Marvell's Lumentum acquisition may challenge Broadcom in AI optics. Meta is reportedly exploring a $20B debt package for operations and capital needs, according to Bloomberg.

Samsung Electronics reported a 200 billion won operating loss in Q3 for its TV and appliances businesses, citing weak demand and rising costs. The company plans to focus on premium TVs and platform services to offset higher LCD panel prices, which are expected to rise next year. Samsung also announced a stake purchase in CSOT to secure supply and manage costs.

The U.S. has delayed export licenses for SK hynix (000660) to expand its China plant, affecting its New York investment plans. Solidigm, its U.S. subsidiary, seeks licenses for the Dalian plant's operation. Approval is key for SK hynix's $45B-$100B NAND flash plant investment in New York.

SK Hynix's plans for new memory-chip plants in New York face delays due to US restrictions on exporting chipmaking equipment to China. The South Korean company seeks export licenses for its Dalian plant, which is crucial for funding its US expansion. The Commerce Department has not yet approved the licenses, raising questions about US policy on China. Solidigm, SK Hynix's unit, plans to invest up to $100 billion in New York NAND plants. Negotiations are ongoing.

Apple (AAPL) warned of 'unprecedented' memory pricing, expecting costs to rise beyond December. This impacts margins, with December quarter gross margin forecast at 45-46%, down from 47.9%. Memory costs drove a 1% margin decline from June to September. Apple raised prices on devices to offset costs. Micron (MU), SK hynix (SKHY), and Samsung (005930.KS) face supply constraints and pricing power due to AI demand, but China's expanding memory production poses long-term risks.