Core Viewpoint - Samsung Electronics is set to complete the design of its next-generation mobile application processor (AP) "Exynos 2800" by the end of this year, utilizing a 2nm process technology to ensure stability in development and yield [1][2]. Group 1: Exynos 2800 Development - The Exynos 2800, codenamed "Vanguard," is being developed with a target for tape-out by the end of this year, which marks the completion of the chip design and the handover for manufacturing [1]. - The design of Exynos 2800 will follow the naming convention based on existing mountain names, continuing from previous models like Exynos 2500 to 2700 [1]. Group 2: Process Technology - Exynos 2800 will utilize Samsung's most advanced 2nm process technology, specifically an improved version of the second-generation 2nm process (SF2P+) [2]. - The SF2P process offers a 12% performance increase, a 25% reduction in power consumption, and an 8% decrease in area compared to the first-generation 2nm process (SF2) [2]. - The decision to focus on the SF2P+ process instead of aggressively pursuing the 1.4nm process (SF1.4), which has been delayed by about two years, reflects a strategic shift towards optimizing yield stability [2]. Group 3: Industry Insights - Industry insiders indicate that it is no longer realistic for Samsung to continue annual advancements in process technology for mobile APs, leading to a focus on Design Technology Co-Optimization (DTCO) as a viable alternative [3].

Summary of Key Points from the Conference Call Company: Samsung Electronics Core Insights and Arguments - Kiwoom Securities predicts that Samsung Electronics' non-memory division "will restore operating profit next year," maintaining a "buy" rating with a target price of 210,000 KRW [1] - Analyst Park Yu-kyung stated that improvements in yield for the 2nm second-generation (SF2P) process used for Exynos 2700, increasing customer demand for cost reduction, and enhancements in benchmark performance will allow Exynos 2700 to gain a larger market share [1] - Exynos 2700 is expected to enter full-scale production on Samsung's SF2P process in the second half of this year, with an estimated adoption rate of about 50% in the Galaxy S27 [1] - Kiwoom Securities estimates that Samsung Electronics' non-memory division will achieve revenue growth next year, with operating profit turning into surplus [1] Additional Important Insights - Park noted that rising market expectations for non-memory profitability will serve as additional upward momentum for the stock [2] - Kiwoom Securities forecasts that Samsung Electronics' total revenue and operating profit for this year will see year-on-year growth [2] - This forecast is based on expectations that commodity-grade DRAM and NAND prices will increase by 109% and 105%, respectively, during the same period [2] - The surge in commodity-grade DRAM prices and profitability is expected to create favorable conditions for price negotiations for the sixth-generation high bandwidth memory (HBM4) [2]

Summary of Key Points from the Conference Call Company and Industry Overview - The conference call discusses **Samsung Electronics** and its **non-memory business** segment, with a focus on the **Exynos 2700** processor and its production process. Core Insights and Arguments - **Profitability Forecast**: Kiwoom Securities predicts that Samsung Electronics' non-memory division will return to operating profit next year, maintaining a "buy" rating with a target price of **210,000 KRW** [1] - **Market Share Growth**: The improvement in yield rates for the **2nm second-generation (SF2P)** process used for the Exynos 2700, along with increasing customer demand for cost reduction and enhanced baseline performance, is expected to help the Exynos 2700 gain a larger market share [1] - **Production Timeline**: The Exynos 2700 is set to enter full-scale production on Samsung's SF2P process in the second half of this year, with an anticipated adoption rate of approximately **50%** in the upcoming **Galaxy S27** [1] Financial Projections - **Revenue and Profit Estimates**: Kiwoom Securities estimates that Samsung Electronics' non-memory division will achieve revenues of **36.4 trillion KRW** next year, representing a **21%** year-over-year increase, and will turn to an operating profit of **1.8 trillion KRW** [2] - **Overall Company Performance**: For the current year, Samsung Electronics is projected to have total revenues and operating profits of **500 trillion KRW** and **173 trillion KRW**, respectively, reflecting year-over-year growth of **50%** and **295%** [2] - **DRAM and NAND Price Increases**: The projections are based on expectations that commodity-grade **DRAM** and **NAND** prices will rise by **109%** and **105%**, respectively, during the same period [2] - **Future Negotiations**: The surge in commodity-grade DRAM prices and profitability is expected to create favorable conditions for price negotiations regarding the **sixth-generation high bandwidth memory (HBM4)** [2] Additional Important Insights - The anticipated recovery in the non-memory segment's profitability is seen as a potential additional upward momentum for Samsung's stock [2]