Samsung Electronics: "Conventional DRAM Is More Profitable Than HBM, But We Will Maintain a Balanced Production Mix" [Conference Call]

[Financial News] Recently, conventional Dynamic Random Access Memory (DRAM) has become more profitable than High Bandwidth Memory (HBM). Against that backdrop, Samsung Electronics said the profitability gap between the two products is expected to narrow significantly next year.
At its first-quarter earnings conference call on the 30th, Samsung Electronics said, "It is true that conventional DRAM is currently more profitable than HBM. We are aware of outside views that, in the short term, it would be more advantageous to increase the share of Server DDR5 rather than HBM from an earnings perspective." It added, "In the industry, HBM is typically negotiated on an annual basis, taking into account the lead time needed to expand capacity, while conventional DRAM is negotiated quarterly. Under these conditions, the price increase for conventional DRAM has widened sharply each quarter, creating a reversal in profitability between the two products."
It also stated, "Given the HBM supply negotiation environment, where the gap between supply and demand continues to widen, the profitability gap will narrow significantly next year, and we will maintain a balanced production mix."
soup@fnnews.com Im Su-bin Reporter