Samsung aims to accelerate development of next-generation HBM

(Kim Ho-young)

South Korea’s tech giant Samsung Electronics Co. plans to pursue a “selection and focus” strategy by reducing investments in the underperforming foundry (contract chip manufacturing) segment while increasing investments in advanced chips such as high-bandwidth memory (HBM).

It plans to adjust its facility investments to align with semiconductor price trends and boost investments in high-value products such as HBM and DDR5.

“We are currently mass-producing and selling HBM3E 8- and 12-layer products,” a Samsung Electronics offical said. “We have completed a critical stage in quality testing with a major client, paving the way for expanded sales in the fourth quarter.”

This implies that purchases from Nvidia Corp., the world’s largest graphics processing unit (GPU) manufacturer, are imminent.

“We are also aiming to begin mass production of HBM4 in the latter half of 2025,” the official added.

announced its “confirmed third-quarter results” for 2024 on Thursday, reporting 29.27 trillion won ($21.31 trillion) in revenue and 3.86 trillion won in operating profit for its Device Solutions (DS) division, which is responsible for semiconductor business.

This marked a substantial turnaround from the 3.75 trillion won loss in the third-quarter of 2023, but fell short of market expectations of profits above 4 trillion won.

The operating profit of its memory division, which is responsible for DRAM and NAND, is estimated to be close to 7 trillion won, significantly less than its market competitor SK hynix Inc.‘s 7.03 trillion won.

Samsung explained that incentive payouts and a stronger won against major emerging market currencies negatively impacted its balance sheet.