Samsung Electronics acknowledged today that it's fallen behind in the AI chips war.
Between the lines: Samsung — which competes in the memory-chip market with the likes of SK Hynix and Micron Technology — issued a disappointing profit outlook.
The vice chairman of the company's device solutions division, Young Hyun Jun, issued an open letter apologizing to customers, investors and employees for not meeting expectations.
Between the lines: In the booming market for high-bandwidth chips sold to chip designer Nvidia, SK Hynix and Micron are already selling — while "Samsung is still in the final stages of passing Nvidia's quality standards," WSJ reported.
"Samsung's late response to the AI chip market increases its reliance on traditional, lower-margin chips, making it more vulnerable to competition from China and slowing demand for smartphones and PCs," Reuters reported, citing analysts.
