[Conference Call] Samsung Electronics Targets Custom HBM4 Sales Next Year... "In Talks with Multiple Customers" (Comprehensive)

Samples of Improved HBM3E Supplied
Nvidia Qualification Expected in June
Performance Expected to Improve in Second Half

Samsung Electronics announced that it has completed the supply of samples of its improved fifth-generation high-bandwidth memory (HBM) 3E products to major customers. The company also stated that it plans to proceed with mass production of HBM4, the sixth-generation HBM, in the second half of this year as originally scheduled, with commercialization set for next year.

On the morning of April 30, 2025, during its Q1 earnings conference call, Samsung Electronics provided an update on its HBM3E business, stating, "We have completed the supply of samples to major customers and expect the number of purchasing companies to gradually increase starting in the second quarter." Since last year, Samsung Electronics has been undergoing quality (qualification) testing to supply 12-layer HBM3E to Nvidia, but has not yet passed. Industry sources predict that Samsung Electronics will pass Nvidia's qualification test in June.

Regarding HBM4, the company said, "We are also working on custom HBM projects based on HBM4 and HBM4E with multiple customers," and added, "Some custom HBM4 projects, along with standard HBM4, are scheduled for sales in 2026." Additionally, Samsung Electronics emphasized, "After hitting a low point in the first quarter, HBM sales are expected to recover step by step each quarter, alongside improvements in HBM3E sales."

On this day, Samsung Electronics announced, "Company-wide revenue increased by 4% quarter-on-quarter to 79.14 trillion won, marking the highest quarterly revenue ever." Operating profit reached 6.7 trillion won, up 0.2 trillion won from the previous quarter. The operating margin was 8.4%, similar to the previous quarter.

Samsung Electronics Seocho Building. Photo by Kang Jinhyung

Facility investment amounted to 12 trillion won, down 5.8 trillion won from the previous quarter. Of this, 10.9 trillion won was allocated to the semiconductor division and 500 billion won to the display division. Samsung Electronics explained, "Overall, memory investment decreased compared to the previous quarter due to flexible investment execution in response to supply and demand. We continue to invest in future technologies and advanced processes," and added, "For foundry, considering market conditions and investment efficiency, we prioritized utilizing existing line conversions, resulting in a decrease in investment compared to the previous quarter."

Despite the recent deterioration in performance in the semiconductor division and other areas, Samsung Electronics expressed a positive outlook for the second half of the year. The company stated, "Once current uncertainties are resolved, overall performance is expected to improve in the second half, following a 'low in the first half, high in the second half' trend."

The company further explained, "In the semiconductor (DS) division, despite the global trade and economic crisis, the spread of on-device AI is expected to improve the memory market for mobile PCs. We will actively respond to demand for high-capacity HBM products and strengthen our competitiveness by focusing on high value-added products. For foundry, we will focus on improving profitability by expanding customer orders."

Additionally, "In the Device Experience (DX) division, we aim to expand sales of flagship smartphones such as new foldable models to be launched in the second half of the year," and added, "With the anticipated increase in premium demand for wearables and all products, as well as the expansion of market penetration in emerging markets, we will actively respond to these new demands."

Notably, Samsung Electronics announced on this day that it will increase the proportion of stock-based compensation in executive performance incentives. The company explained, "By linking performance incentives to stock price and business performance, we aim to ensure that executives are committed to enhancing corporate value and long-term results, aligning the interests of the company and shareholders, and providing direct motivation to increase shareholder value. We will continue our efforts to enhance mid- to long-term company and shareholder value."

Samsung Electronics has repeatedly demonstrated its commitment to shareholder-oriented management, such as announcing in November last year that it would repurchase a total of 10 trillion won worth of treasury shares over one year. During the conference call, the company stated, "As of mid-February, we have completed the acquisition and cancellation of 3 trillion won worth of treasury shares, and are proceeding with the additional purchase of another 3 trillion won out of the remaining 7 trillion won."

In response to questions about the impact of U.S. tariff policies, the company stated, "Due to the recent rapid changes in tariff policies and geopolitical conflicts among major countries, it is difficult to accurately predict the impact on our business and formulate countermeasures. We are closely monitoring the direction of major countries' trade policies and are working to minimize negative impacts by maintaining close communication with relevant countries."

The company added, "For the Visual Display (VD) and Digital Appliances (DA) businesses, we plan to expand premium product offerings and, if necessary, consider relocating production of certain volumes using global manufacturing bases to minimize the impact of tariffs. For the DS division, we will closely monitor the direction of U.S. semiconductor tariff policies and continue to review response plans based on various scenarios."