Samsung Electronics, Global HBM4 Competition Begins in Earnest..."Sample Supply to Customers Completed"

[Financial News] Samsung Electronics has completed the development of its next-generation (6th generation) high-bandwidth memory (HBM) product, HBM4, and delivered HBM4 samples (prototypes) to major global customers 'end of June, early July.' Following SK Hynix, which led the global HBM market and supplied HBM4 samples for the first time in the industry last March, Samsung Electronics has also entered the full-scale HBM4 competition track at an interval of about three months. It is expected that Samsung Semiconductor will tighten the reins of the grand pursuit towards the HBM4 market, which will be in full swing from next year. 
Samsung Electronics announced at the 2nd quarter earnings conference call on July 31 that "the approval for mass production transition of the 10-nanometer (nano·1㎚=1 billionth of a meter) class DRAM '1c process' has been completed, and based on this, the development of HBM4 products has also been completed and samples have been shipped to major customers." It is understood that Samsung Electronics sent HBM4 prototypes to customers such as Nvidia around the same time as Micron Technology in the U.S. (June). Nvidia has announced that it will equip HBM4 from its next-generation graphics processing unit (GPU) 'Rubin' and AI accelerators, which will be officially launched next year. 
Regarding the developed HBM4, Samsung Electronics stated, "By applying the latest fine logic circuit process and optimizing the design, we have significantly improved performance and energy efficiency compared to HBM3E (5th generation)" and "We plan to increase supply in a timely manner to meet the full-scale demand for HBM4 in 2026." 


In the second quarter, Samsung Electronics' HBM sales (including HBM3 and HBM3E) increased by 30% compared to the previous quarter. The proportion of HBM3E among the total HBM volume is also targeted to increase to 90% in the second half. Although there is no news of HBM3E supply to Nvidia, it is understood that deliveries are being made to AMD (HBM3E 12-layer) and Broadcom (HBM3E 8-layer).  
The foundry (semiconductor contract manufacturing) business, which had been stagnant, is also showing signs of vitality recently. Samsung Electronics plans to accelerate its performance rebound, starting with a 22.8 trillion won contract for AI semiconductor chip contract manufacturing with Tesla. Next year, investment in the new foundry plant in Taylor, Texas, USA, will also be expanded. 
Samsung Electronics aims to rebound its performance from the second half, marking the end of the bottom in the first half. In the second quarter, the sales and operating profit of the Device Solutions (DS) division, which is responsible for Samsung Electronics' semiconductor business, were recorded at 27.9 trillion won and 400 billion won, respectively (confirmed results). The operating profit of the semiconductor division is the lowest since the 2 trillion won deficit recorded in the fourth quarter of 2023.
Meanwhile, on this day, Park Soon-chul, Chief Financial Officer (CFO·Vice President) of Samsung Electronics, stated, "The uncertainty has decreased with the conclusion of the Korea-U.S. tariff negotiations," and "We will closely monitor the additional discussions between the two countries and prepare response measures accordingly." The tariff on semiconductor items in the U.S. is expected to be announced around mid-August, separate from this mutual tariff negotiation. ehcho@fnnews.com Cho Eun-hyo, Lim Soo-bin Reporter