Samsung Electronics "3Q HBM3E Supply in Full Swing... Aiming for 6th Gen HBM4 Shipment Next Year" (Comprehensive)

HBM Customer Agreement Volume Secured 4 Times YoY
Foundry 3nm 1st Gen GAA Yield Maturation Stage
Union Strike: "Doing Our Best to Prevent Production and Management Disruptions"

Samsung Electronics announced that it plans to ramp up the supply of the 5th generation high-bandwidth memory (HBM), HBM3E, in the third quarter. The company is developing the 6th generation HBM4 product with the goal of shipping it next year and has already been negotiating detailed specifications with multiple customers. Regarding NVIDIA's HBM3E qualification test (quality verification), Samsung stated, "We cannot comment due to a non-disclosure agreement (NDA)."

Samsung Electronics announced that its provisional consolidated operating profit for last year was 6.54 trillion KRW, and sales amounted to 258.16 trillion KRW. Operating profit decreased by 84.92% and sales decreased by 4.91% compared to the same period last year. The photo shows Samsung Electronics Seocho Building in Seocho-gu, Seoul, on the 9th. Photo by Jinhyung Kang aymsdream@

On the 31st, Samsung Electronics announced that its consolidated operating profit for the second quarter reached KRW 10.4439 trillion. The semiconductor (DS) division earned KRW 6.45 trillion. Sales amounted to KRW 28.56 trillion, surpassing TSMC (USD 67.351 billion, approximately KRW 28.5 trillion), the world's largest foundry (semiconductor contract manufacturing) company, for the first time in two years since Q2 2022.

During the Q2 earnings conference call, Samsung Electronics did not comment on whether it passed NVIDIA's qualification test. However, it explained that the roadmap for HBM semiconductors and advanced foundry processes is progressing as planned. Regarding HBM, competitor SK Hynix has been supplying NVIDIA with HBM3E 8-stack products since March and announced that 12-stack products will begin supply in the fourth quarter. Samsung Electronics is in a position to aim for a turnaround with HBM3E 12-stack products and next-generation products after HBM4, and stated that development is proceeding smoothly.

Kim Jae-jun, Vice President and Head of Strategy Marketing at Samsung Electronics DS Division Memory Business Unit, said during the conference call, "The HBM3E 8-stack product is undergoing normal customer evaluations, and mass production supply is expected to ramp up in the third quarter. The HBM3E 12-stack, which we developed and supplied samples for first in the industry, has already completed mass production ramp-up preparations, and supply will be expanded in the second half of the year according to the schedules requested by multiple customers."

He continued, "The next generation (6th generation) HBM4 is being developed normally with the goal of shipping in the second half of next year. We are also developing custom HBM products optimized for each customer's performance, and have already started detailed specification discussions with multiple customers."

He added, "We are aware that investors and media have significant interest in our HBM qualification tests, but to comply with confidentiality agreements with customers, we cannot disclose information related to this."

Samsung Electronics expects the proportion of HBM within the DRAM business, and specifically HBM3E within HBM, to continue growing. Vice President Kim said, "Our HBM sales, which increased by the mid-50% range quarter-over-quarter in Q2, are expected to grow sharply at about double each quarter. In the second half, growth is expected to expand to 3 to 5 times compared to the first half." He added, "The sales proportion of HBM3E within HBM is expected to exceed the mid-10% range in Q3 and rapidly expand to around 60% in Q4."

On the 8th, when the National Samsung Electronics Labor Union, Samsung Electronics' largest union, declared a three-day general strike, union members shouted slogans at the general strike rally held in front of the main gate of Samsung Electronics Hwaseong Plant in Hwaseong, Gyeonggi-do. Photo by Jo Yongjun jun21@

He also said that customer orders, which significantly impact performance, are progressing well. Vice President Kim stated, "We are increasing high-bandwidth memory (HBM) production capacity (CAPA) and have completed production and customer negotiations this year. The volume agreed upon with customers is nearly four times that of the previous year." He added, "Next year, we plan to supply more than double this year's volume, and some customer requests continue to increase. We will continue negotiations with customers and plan additional production next year."

Foundry technology development is also progressing as planned. Song Tae-jung, Executive Director of Samsung Electronics DS Division Foundry Business Unit, said, "The 3nm gate-all-around (GAA) process has entered its third year this year, and the first-generation yield has reached a mature stage. The second-generation 3nm GAA is scheduled for full-scale mass production in the second half of the year, starting with wearable products." He added, "The 2nm GAA is planned for first mass production in 2025, based on experience with the 3nm process, and the second-generation 2nm GAA process is scheduled for mass production in 2026."

Meanwhile, Samsung Electronics said it is communicating with the labor union to ensure that the union strike does not cause significant disruptions to production and management. Samsung Electronics stated, "We are communicating and negotiating to bring the current labor union strike to an early conclusion. Despite the union strike, there are no issues with our production volumes, and even if the strike continues, we will do our best within legal limits to ensure that management and production are not disrupted."