[Conference Call] Samsung Electronics: "Expanding HBM4 Supply to Meet Demand... Secures 2nm Foundry Orders" (Comprehensive)

"Clients Say 'Samsung is Back'"
"High-Performance HBM4 Market Arrives, Active Supply Expansion"
"Humanoid Robot Business Will Achieve Results"
"Second-Generation 2nm Foundry to Begin Mass Production in Second Half"

Samsung Electronics, which achieved record-high sales last year amid the semiconductor supercycle, forecasted further performance improvements across its business divisions, including memory and foundry, for this year. In particular, the company emphasized its intention to actively expand supply capacity to meet the increasing demand for high-bandwidth memory (HBM). Samsung also announced plans to begin mass production of its second-generation 2-nanometer (nm) foundry products in the second half of this year.

Park Soonchul, Chief Financial Officer of Samsung Electronics, stated during the fourth-quarter 2025 earnings conference call held on January 29, "The first half of 2025 was challenging due to difficult internal and external conditions. However, thanks to the unwavering support and encouragement from our shareholders, we achieved a turnaround in the second half as promised, resulting in the highest sales in our history." He added that clients have evaluated the company as having "Samsung is back."

The company explained that it expects memory demand driven by the AI boom to continue this year and that it will respond proactively to meet this demand. Samsung stated, "We anticipate the high-performance HBM4 market will fully emerge, and the trend toward higher-capacity server DRAM will continue to expand. For DRAM, we plan to actively respond to customer demand by timely expanding supply of HBM4, which has competitive performance targeting new graphics processing units (GPUs) and application-specific integrated circuits (ASICs) in the AI market." The company added, "At the same time, we will continue to increase the proportion of AI-related products such as high-capacity DDR5, SoCAM2, and GDDR7."

Photo of Samsung Electronics headquarters in Seocho-gu, Seoul on the 8th. Photo by Yonhap News.

The company also stressed continued investment in future growth areas such as humanoid robots, which have become a hot topic. Samsung stated, "This year, we aim to achieve tangible results in the humanoid robot business as part of our future strategy," and "In the Device Experience (DX) division, we will expand our lineup of products incorporating artificial intelligence." The company added, "We will continue to invest in air conditioning, automotive electronics, medical technology, and robotics to secure future growth engines and maintain leadership in future technologies."

Samsung also disclosed specific plans for its HBM business. "Based on customer feedback regarding our performance competitiveness, we have already begun normal mass production of HBM4 products. In response to requests from major clients, we plan to start mass shipments of HBM4, including the top-tier 11.7Gbps version, from February," the company announced. Regarding next-generation products, Samsung explained, "For HBM4E, we plan to provide samples to customers as standard products in the middle of this year, and for custom HBM products based on HBM4E core dies, we will begin initial wafer shipments in line with customers' schedules in the second half of the year."

However, Samsung drew a clear line regarding the 16-stack competition. The company stated, "For 16-stack HBM3E or HBM4 products, current customer demand is very limited, so we have determined that mass production and commercialization of HBM3E or HBM4 16-stack products is unnecessary." Regarding hybrid bonding, Samsung explained that HBM4-based samples were delivered to major customers last quarter, and some commercialization is planned at the HBM4E stage.

The company expects HBM supply to remain tight for the time being. "Currently, all of our secured production capacity for high-bandwidth memory (HBM) has been fully booked by major customers," Samsung said. "We expect our HBM sales in 2026 to improve by more than three times compared to the previous year." The company added, "It is noteworthy that despite our efforts to expand supply, major customers' demand for HBM in 2026 is already exceeding our supply capacity. In the short term, we are strengthening our ability to meet demand for HBM3E, while simultaneously making active investments to secure 1c-nanometer process-based capacity for HBM4 and HBM4E."

The company also highlighted the recovery trend in its foundry business. Despite ongoing US-China trade uncertainties, Samsung said it continues to expand orders for advanced processes, driven by increasing demand for AI and high-performance computing (HPC). "Based on robust demand for AI and HPC applications, we are expanding our customer base and expect double-digit sales growth and continued performance improvement centered on advanced processes compared to the previous year," the company stated.

Regarding its process roadmap, Samsung provided specific updates on its 2-nanometer and next-generation process preparations. "Development of the second-generation 2-nanometer process is progressing smoothly, with yield and performance targets being met, and we are aiming for mass production in the second half of the year," the company said. "We are also collaborating with major customers on PPA (power, performance, area) evaluations and test chips." For the 14-nanometer process, Samsung added, "We are achieving key milestones as planned with the goal of mass production in 2029. In the second half of next year, we plan to distribute PDK (process design kit) version 1.0 to customers to initiate design and establish the ecosystem in earnest."

Samsung's plan to establish a production base in the United States is also proceeding as scheduled. "The Taylor fab in the US is being constructed as planned for regular operation this year," the company said, emphasizing its role as a strategic base to respond to global customers and supply chain restructuring. Samsung stated, "We are the only company capable of providing a 'one-stop solution' that vertically integrates logic process-based base dies and memory process-based core dies in three dimensions," and expressed its intention to strengthen its integrated order competitiveness by combining memory, foundry, and advanced packaging.

Additionally, Samsung Electronics stated, "To deliver the high performance, low power, and high bandwidth required at the leading edge, we will provide optimized solutions that link logic, memory, and advanced packaging technologies, and will continue to strengthen our business competitiveness."