Conference Call Following Q3 Earnings Release
"Secured Demand for Next Year's HBM Production Plan"
On Possibility of Further HBM Production: "Under Internal Review"
HBM4 Development Completed... Samples Supplied, Mass Production Ready
Strong M
Samsung Electronics announced that its supply of high-bandwidth memory (HBM) for next year is virtually sold out, with additional orders from clients continuing to come in.
On October 30, during a conference call following the announcement of its third-quarter earnings, Samsung Electronics stated, "We have already secured customer demand for our planned HBM production for next year."
The company added, "We have established next year's HBM production plan with a significant increase compared to this year. However, as additional customer demand continues to be received, we are internally reviewing the possibility of further expanding HBM production."
Samsung Electronics explained that development of its latest product, HBM4, has already been completed and samples have been shipped to all customers. The company is prepared to begin mass production and shipment according to each client's schedule. Regarding HBM sales trends in the third quarter of this year, Samsung Electronics reported that sales expanded to the mid-80% range compared to the previous quarter. The company also noted that, except for a small remaining volume of older HBM products, nearly all sales have shifted to HBM3E.
Previously, Samsung Electronics announced that sales in its Device Solutions (DS) division increased by 19% compared to the previous quarter, stating, "HBM3E is being mass-produced and sold to all customers, and HBM4 samples have been shipped to every client that requested them."
Looking ahead to the fourth quarter and beyond, Samsung Electronics expects continued strong demand for high-performance, high-capacity memory semiconductors for artificial intelligence (AI) infrastructure, and anticipates that supply shortages may occur for certain products. The company stated, "In particular, for NAND, due to supply shortages of HDDs, demand for QLC SSDs as a substitute is expected to remain robust, and industry inventory levels are likely to reach the bottom earlier than previously anticipated."
The company further added, "Even considering our capacity expansion and maximum production next year, customer demand will outpace supply, and available supply will fall significantly short of demand."
Samsung Electronics plans to respond to the growing demand for AI applications by expanding its capacity focused on high-performance memory. The company stated, "For memory investment in 2026, we are considering a significant increase compared to the previous year, maintaining an aggressive investment stance. The proportion of DRAM investment within total investment is also expected to rise compared to last year."
The company added, "For DRAM, we will focus on facility investment to expand production of advanced bits, based on building a portfolio of 1b and 1c nanometer (1nm = one billionth of a meter) products, while also carrying out some construction investment to respond to future mid- to long-term demand."
In the foundry business, Samsung Electronics plans to continue expanding the share of advanced processes with the launch of new 2nm products. The company stated, "In the fourth quarter, we expect increased sales through the full-scale mass production of new products using the first-generation 2nm process, as well as expanded sales of high-performance computing (HPC), automotive, and memory products for major clients."
The company emphasized, "Development of the second-generation 2nm process is proceeding as planned, and we will continue to expand the share of advanced processes to ensure stable revenue growth in response to strong demand for AI HPC applications."
However, Samsung Electronics sees volatility in its outlook for the second half of next year due to market uncertainties. The company stated, "For the second half of 2026, we are monitoring more closely due to uncertainties arising from geopolitical issues such as tariffs and export restrictions on AI-related semiconductors."
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