[Concall] Samsung Electronics "HBM3 Shipment Begins... Doubling Capacity Next Year"

Samsung Electronics announced on the 27th during a conference call following its Q2 earnings release that it has exclusively supplied HBM2 to major customers and is smoothly progressing with the HBM2E product business. The company also stated that it has begun shipping HBM3 16-gigabyte (GB) and 24GB products to leading artificial intelligence (AI) system-on-chip (SoC) companies and cloud service providers.

The company further explained, "We are applying a new NCF (Non-Conductive Film) material, which is significantly improved compared to before, to HBM3 products and are shipping to customers through enhanced quality and mass production capabilities." It added, "The next generation of HBM3, called HBM3P, is scheduled for release in the second half of the year, focusing on 24-gigabit (Gb) products."

The HBM market is expected to grow at an average annual growth rate in the mid-to-high 30% range over the next five years. In particular, steep demand growth is anticipated this year and next due to intensified generative AI competition among hyperscaler companies.

Samsung Electronics stated, "We have secured customer demand exceeding the mid-1 billion Gb level, which is double last year's volume, and are working to expand supply by improving productivity in preparation for additional orders in the second half of the year." It also explained, "We plan to continuously expand supply capacity to meet the rapidly increasing future demand. The HBM capacity in 2024 will be secured at least twice as much as this year through expansion investments, and we will respond further according to future demand changes."

Samsung Electronics is continuing development to apply advanced technologies in next-generation HBM products. "We are developing technology to directly bond chips in the 16-layer HBM4, which has thickness constraints," and predicted, "We will enhance competitiveness as a leading HBM company through continuous expansion of new technologies."

[Image source=Yonhap News]