Despite reporting a 274 percent increase in operating profit for Q3 2024, Samsung Electronics faces a crisis due to its unraveling semiconductor strategy.
Samsung's ambitious 12-layer HBM3E chips, aimed at capturing the AI market, have suffered from thermal issues leading to missed opportunities against competitors like SK hynix.
The company has issued a public apology acknowledging its struggles, including competitive setbacks and leadership changes, which signal internal turmoil within the organization.
Losing key clients like Nvidia due to reliability concerns in AI chip supply could have dire implications for Samsung amid an increasingly competitive memory market.
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