Samsung Electronics indicated on Wednesday that while global demand for semiconductors is expected to remain robust this year, propelled by the artificial intelligence wave, rising memory chip prices could adversely affect shipments of computers and mobile phones. Han Jong-hee, Vice Chairman and Co-CEO of Samsung, who oversees the chip business, stated at the annual shareholders' meeting, "We anticipate a favorable business environment due to growing AI demand and the resulting persistent shortage in memory supply." He added, "However, risk factors remain, including uncertainties in the global macroeconomic landscape, such as tariff issues, and cost pressures on finished goods businesses encompassing televisions, mobile phones, and home appliances."

Strong demand from AI data center operations has created bottlenecks in the global semiconductor supply chain, limiting the availability of memory chips for industries ranging from automobiles and computers to smartphones. Samsung's stock has surged to record highs this year, climbing 62% since January and outperforming the South Korean benchmark index's 34% gain, delighting shareholders. This performance is largely attributed to the global memory chip shortage, which has enabled Samsung and its competitors, including SK Hynix and Micron, to significantly increase prices. These three firms dominate global memory chip production.

At last year's shareholders' meeting, Han apologized for Samsung's initial missteps in capturing the AI chip market opportunity, which had led to declines in both share price and profits, as he sought to reassure frustrated investors. Since then, conditions have improved. Following a sharp rise on Tuesday, Samsung's shares gained another 5.3% on Wednesday. This increase came after NVIDIA CEO Jensen Huang announced that the Korean company is manufacturing NVIDIA's new AI chips. Analysts suggest that Huang's remarks have fueled market optimism regarding Samsung's foundry division. This unit, which produces logic chips for Tesla, Apple, and Samsung's own mobile division, is projected to return to profitability as early as next year, following years of annual losses amounting to billions of dollars.

"The situation couldn't be better," remarked shareholder Oh Bong-gyu before Wednesday's meeting, referring to Samsung's stock market rebound. "But I am somewhat concerned about Samsung's labor union and the burden it places on management." The Samsung union has threatened to disrupt chip production as employees grow increasingly dissatisfied with wage disparities compared to major competitors, with members voting on plans for a potential strike in May. Han acknowledged that Samsung has lagged behind rivals in wage competitiveness due to reduced performance-based pay resulting from earlier weak chip earnings. He stated, "However, as we have restored the competitiveness of our semiconductor products since last year, the distribution of performance bonuses is recovering, and we expect the wage competitiveness gap to narrow."