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A Samsung Electronics Co. 12-layer HBM3E, top, and other DDR modules arranged in Seoul, South Korea, on Thursday, April 4, 2024. Samsung’s profit rebounded sharply in the first quarter of 2024, reflecting a turnaround in the company’s pivotal semiconductor division and robust sales of Galaxy S24 smartphones. Photographer: SeongJoon Cho/Bloomberg via Getty Images

Bloomberg | Bloomberg | Getty Images

High-performance memory chips are likely to remain in tight supply this year, as explosive AI demand drives a shortage for these chips, according to analysts.

SK Hynix and Micron – two of the world’s largest memory chip suppliers – are out of high-bandwidth memory chips for 2024, while the stock for 2025 is also nearly sold out, according to the firms.

We expect the general memory supply to remain tight throughout 2024,” Kazunori Ito, director of equity research at Morningstar said in a report last week.

The demand for AI chipsets has boosted the high-end memory chip market, hugely benefiting firms such Samsung Electronics and SK Hynix, the top two memory chipmakers in the world. While SK Hynix already supplies chips to Nvidia, the company is reportedly considering Samsung as a potential supplier too.

High-performance memory chips play a crucial role in the training of large language models (LLMs) such as OpenAI’s ChatGPT, which led AI adoption to skyrocket. LLMs need these chips to remember details from past conversations with users and their preferences to generate human-like responses to queries.

“The manufacturing of these chips are more complex and ramping up production has been difficult. This likely sets up shortages through the rest of 2024 and through much of 2025,” said William Bailey, director at Nasdaq IR Intelligence.

HBM’s production cycle is longer by 1.5 to 2 months compared with DDR5 memory chip commonly found in personal computers and servers, market intelligence firm TrendForce said in March.

Samsung gets $6.4 billion for chip plants

To meet soaring demand, SK Hynix plans to expand production capacity by investing in advanced packaging facilities in Indiana, U.S. as well as in the M15X fab in Cheongju and the Yongin semiconductor cluster in South Korea.

Samsung during its first-quarter earnings call in April said its HBM bit supply in 2024 “expanded by more than threefold versus last year.” Chip capacity refers to the number of bits of data a memory chip can store.

“And we have already completed discussions with our customers with that committed supply. In 2025, we will continue to expand supply by at least two times or more year on year, and we’re already in smooth talks with our customers on that supply,” Samsung said.

Micron didn’t respond to CNBC’s request for comment.

Intense competition

Big Tech companies Microsoft, Amazon and Google are spending billions to train their own LLMs to stay competitive, fueling demand for AI chips.

“The big buyers of AI chips – firms like Meta and Microsoft – have signaled they plan to keep pouring resources into building AI infrastructure. This means they will be buying large volumes of AI chips, including HBM, at least through 2024,” said Chris Miller, author of “Chip War,” a book on the semiconductor industry.

Chipmakers are in a fierce race to manufacture the most advanced memory chips in the market to capture the AI boom.

SK Hynix in a press conference earlier this month said that it would begin mass production of its latest generation of HBM chips, the 12-layer HBM3E, in the third quarter, while Samsung Electronics plans to do so within the second quarter, having been the first in the industry to ship samples of the latest chip.

“Currently Samsung is ahead in 12-layer HBM3E sampling process. If they can get qualification earlier than its peers, I assume it can get majority shares in end-2024 and 2025,” said SK Kim, executive director and analyst at Daiwa Securities.

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Uber opens ‘interest list’ for Waymo robotaxi rides in Austin

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Uber opens 'interest list' for Waymo robotaxi rides in Austin

Dara Khosrowshahi, CEO of Uber, speaking on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 22, 2025.

Gerry Miller | CNBC

Ride-hailing and food delivery app Uber is opening its “interest list” to users in Austin, Texas, who want to be first in line for Waymo robotaxis there.

The company said in a statement that users will “be able to travel across 37 square miles of Austin — from Hyde Park, to Downtown, to Montopolis” — when the Uber-Waymo service launches soon.

The so-called “interest list” allows users to receive Uber updates and bolsters their odds of being matched with a Waymo autonomous vehicle upon launch.

The vehicles that will be part of the Austin service are Jaguar iPace electric models equipped with Waymo’s driverless systems and labeled with both Waymo and Uber branding.

The Waymo rides in Austin will only be available through the Uber app, unlike in San Francisco and Los Angeles, where riders hail them through the Waymo One app.

In the face of investor pressure to step up its autonomous vehicle strategy after Tesla promised it would soon start producing robotaxis, Uber last year said it had begun testing a ride-hailing app with some of its employees.

While Tesla does not make vehicles that are safe to use without a human driver at the wheel, ready to steer or brake at all times, Elon Musk’s automaker in January said it will “begin launching” a driverless ride-hailing business “later this year” starting in Austin.

According to the Texas Department of Transportation, testing and operating a commercial robotaxi service in the state does not require the same types of special licenses and permits that other states require.

“Texas law allows for AV testing and operations on Texas roadways as long as they meet the same safety and insurance requirements as every other vehicle on the road,” a spokesperson for the department told CNBC by e-mail.

Uber CEO Dara Khosrowshahi is expected to discuss the impact of automated driving systems — or self-driving cars — on the company’s overall business and strategy on a fourth-quarter earnings call on Wednesday.

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Apple shares fall 3% in premarket after China reportedly considers probe into App Store practices

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Apple shares fall 3% in premarket after China reportedly considers probe into App Store practices

China reportedly considers probe into Apple's App Store practices

Apple shares fell on Wednesday after Bloomberg reported that Chinese regulators are considering whether to open a formal probe into the iPhone giant’s App Store fees and policies.

Shares of Apple were down 2.66% at 09:34 a.m. London time in premarket trading.

The State Administration for Market Regulation (SAMR) is looking into policies that include Apple taking a cut of as much as 30% on in-app spending, as well as blocking third-party payment services and app stores, Bloomberg reported Wednesday, citing people familiar with the matter.

China’s market regulator has not decided whether to formally open an investigation into Apple, according to the report.

Apple and China’s Ministry of Commerce was not immediately available for comment when contacted by CNBC.

The news comes as trade tensions between the U.S. and China ramp up under the administration of President Donald Trump, one month into his second term.

Apple has maintained that its strict App Store policies are designed to protect users and improve the experience across its products.

China this week also opened a probe into Google over alleged antitrust violations, although the market regulator did not supply details over the focus of the investigation.

The Financial Times reported on Tuesday that the SAMR is also considering a probe into U.S. chipmaker Intel.

Apple’s App Store has come under scrutiny from regulators globally. It was forced to open up its App Store in Europe, under the sweeping Digital Markets Act in the EU. This means that it now allows non-Apple companies to offer app stores in Europe, and app developers can also use third-party payment systems.

If the China probe goes ahead, it would cause further headache for Apple in one of its biggest markets. The Cupertino giant is already facing stiff competition from local players like Huawei that are eating away at its smartphone market share. Apple sales in Greater China declined 11% year-on-year in the December quarter.

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Toyota Motor posts nearly 28% drop in third-quarter operating profit, missing estimates

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Toyota Motor posts nearly 28% drop in third-quarter operating profit, missing estimates

FILE PHOTO: The logo of Toyota is pictured in Cuautitlan Izcalli, Mexico, January 30, 2025 

Raquel Cunha | Reuters

Japan’s Toyota Motor on Wednesday reported a second consecutive fall in quarterly profit, while announcing that it will set up a new company in China to make electric vehicles as it plays catch up with automakers focused on EVs. 

Here are Toyota’s results compared with estimates from analysts, compiled by LSEG.

  • Revenue: 12.39 trillion yen vs. 12.1 trillion yen
  • Operating profit: 1.22 trillion yen vs. 1.39 trillion yen

The world’s largest automaker by sales volume saw a nearly 28% year-on-year drop in operating profit during the quarter ended December.

The results mark Toyota’s second consecutive year over year decline in operating profit after the company saw profit fall 20% year over year in the previous quarter.

Net income attributable to the company, however, jumped to 2.19 trillion yen from 1.36 trillion yen a year ago.

The automaker’s consolidated vehicle sales for its financial third-quarter dropped to 2.44 million from 2.55 million units a year ago.

Still, Toyota maintained its full-year dividend forecast at 90 yen, compared with a dividend payout of 75 yen a year earlier.

Toyota said it will establish a wholly-owned company for the development and production of Lexus BEVs and batteries in Shanghai, China. The new company is expected to start production in 2027.

Toyota shares rose over 1% in Tokyo on Wednesday.

The company saw its operating profit drop in the key North America region by 113.7 billion yen in the December quarter, year on year, while it declined by over 46 billion yen in Asia. 

Toyota has been slower than competitors at embracing fully battery-powered electric vehicles, and instead has focused on hybrids, according to local reports.

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