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High Drama and Big Impact: Trump’s Bold Tariff Plans and What to Expect

Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
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Samsung Projects Strong AI-Driven Chip Demand as Q2 Profit Soars on Higher Prices

 

Samsung Electronics forecasts robust artificial intelligence (AI)-driven demand for chips in the latter half of 2024, attributing a significant surge in second-quarter operating profit to rising semiconductor prices.

"In the second half of 2024, AI servers are expected to take up a larger portion of the (memory) market as major cloud service providers and enterprises expand their AI investments," Samsung stated.

Rebounding semiconductor prices, fueled by the AI boom, significantly boosted June quarter earnings for the world's largest producer of memory chips, smartphones, and TVs from a low base last year.

Key Highlights:

  • Share Price: Samsung's share price increased by 0.9% in morning trade, compared to a 0.5% rise in the benchmark index.
  • Operating Profit: Rose to 10.4 trillion won (RM33.42 billion) in April-June, a dramatic rise from 670 billion won a year earlier, marking Samsung's highest operating profit since Q3 2022.
  • Chip Division: Reported a profit of 6.45 trillion won, its highest since Q2 2022, and its second consecutive quarterly profit.

Chips Boom:

The surge in demand for high-end DRAM chips, including high bandwidth memory (HBM) chips used in AI chipsets, as well as chips for data center servers and AI-powered devices, has driven up chip prices.

  • Rival Trends: South Korean competitor SK Hynix also reported increased demand for AI chips, achieving its highest quarterly profit since 2018.
  • Nvidia Standards: While Samsung’s fourth-generation HBM (HBM3) has been approved by Nvidia for use in its H20 graphics processor for the Chinese market, Samsung is yet to meet Nvidia's standards for fifth-generation HBM chips (HBM3E).

Supply Adjustments:

Samsung plans to focus its production capacity on HBM, server DRAMs, and server solid-state drives (SSDs) for AI applications. Consequently, the supply of conventional PC and mobile memory chips will be constrained in the second half of the year.

This strategic shift aligns with the growing demand for AI applications, positioning Samsung to capitalize on the expanding AI market. The company’s forward-looking stance indicates a strong potential for sustained profitability driven by advancements and investments in AI technology.

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