Samsung to Hold Semi-Annual Strategy Meeting Amid Memory Upcycle and End-Market Cost Pressures
Alina Collins
Samsung Electronics convenes its mid-year global strategy meeting June 16–18, facing a split landscape — strong memory demand props up its chip business while rising component costs squeeze smartphones, PCs, and other consumer devices. This means → the same force driving profits in one pillar is eroding margins in the other.
How long can the memory upcycle last?
S&P Global's June 11 report projects the memory upcycle will extend through at least 2028, with Samsung and SK Hynix as the biggest beneficiaries.
Global memory revenue is expected to top $500 billion this year, up from roughly $150 billion in 2022. This means → the market has more than tripled in three years, driven by AI infrastructure buildout.
S&P forecasts the four largest hyperscalers could spend up to $974 billion on AI infrastructure by 2028 — roughly four times 2024 levels.
Rivals need at least three to four years to catch up with Korean vendors, S&P says. In plain terms = capacity expansion is expensive and slow, so Samsung and SK Hynix's lead is safe for now.
Where does HBM stand?
Samsung is supplying sixth-generation HBM4 — high-bandwidth memory, a type of ultra-fast stacked memory designed for AI chips — for Nvidia's next-gen Vera Rubin AI accelerator, and has entered mass production.
The company also shipped the world's first samples of seventh-generation HBM4E. This means → Samsung is trying to shift from "chasing SK Hynix" to running neck-and-neck or ahead in the HBM generation race.
The semiconductor division meeting is set for June 18, chaired by Vice Chairman Jun Young-hyun, with the second-half HBM supply schedule expected to dominate the agenda.
Why are consumer devices under pressure?
The smartphone market is splitting: premium devices like the iPhone and Galaxy S series can absorb higher memory costs, but mid-to-low-end models are weakening.
Samsung's Galaxy A series is bearing the brunt directly; some Chinese smartphone makers have already cut annual targets. This reflects an uneven pass-through — the narrower a product's pricing headroom, the sooner it feels the squeeze.
PCs face the same pressure: AMD's David McAfee said at COMPUTEX 2026 that DDR5 prices may take about two years to normalize. In some regions prices have risen four to five times, pushing buyers back to DDR4 platforms.
How is the foldable race changing?
Samsung's mobile division plans to launch three new foldable phones in H2.
Apple is expected to unveil its first foldable device later this year, directly challenging Samsung's first-mover advantage in the category. This means → foldables shift from "Samsung's niche" to a multi-player battleground.
Samsung and Huawei have both released passport-style wide-format foldables, pre-empting the design direction Apple is expected to take.
What about foundry and displays?
Samsung's foundry business is widely expected to return to profitability in H2 2026; its Taylor, Texas fab is slated to begin operations later this year.
The visual display division appointed Lee Won-jin as its new head last month and is expected to discuss strengthening its AI and premium lineup after partially exiting the Chinese market.
TCL has risen to second globally in TV shipments and formed a Bravia joint venture with Sony, set to begin operations next April. This means → competitive pressure on Samsung's display business is accelerating.
Where are the risks in this upcycle?
S&P warns that new capacity coming online in 2028 could trigger a downcycle — if prices fall while the fixed costs of expansion remain high, profitability will be at risk.
In plain terms = the current profits rest on demand outrunning supply. Once capacity catches up, a price war begins, and the heavy upfront investment turns into a burden.
Chinese rivals CXMT (长鑫存储) and YMTC (长江存储) are flagged by S&P as longer-term risks; CXMT's DRAM market share has been steadily expanding.
Content is for reference only, not financial advice.