[Conference Call] Samsung Electronics Co., Ltd.: “Next year’s HBM supply fully booked ... negotiating memory LTAs with 10 companies” (Roundup)

[Financial News] Samsung Electronics Co., Ltd. said it had sold out its planned HBM supply for next year at its target price. As major customers continue to request additional HBM supply, the company has already completed long-term (multi-year) supply agreements (LTAs) with 10 large customers.
Samsung Electronics Co., Ltd. forecast stronger earnings growth than this year, as semiconductor market conditions are expected to remain strong next year amid continued investment in artificial intelligence (AI) and supply constraints.
At its third-quarter final-results conference call on the 29th, Samsung Electronics Co., Ltd. said, “Third-quarter revenue from HBM4 (sixth-generation) more than tripled from the previous quarter, and with HBM4’s share of HBM rising to around 60%, we also met our HBM4 sales target.”
Samsung Electronics Co., Ltd. added, “Our goal of securing an HBM market share on par with our share of the overall DRAM market in the second half of this year, based on our HBM4 sales performance, appears to have already been achieved in the third quarter.”
Given that Samsung Electronics Co., Ltd. had a 38% share of the global DRAM market in the second quarter, according to market research firm Counterpoint Research, its share of the HBM market in the third quarter is estimated to have been around 40%.
The sample of HBM4E (seventh-generation) that was first shipped worldwide last May has also received positive reviews from customers. Samsung Electronics Co., Ltd. plans to expand HBM4 sales in the second half of this year and begin mass production of HBM4 in the first half of next year.
Samsung Electronics Co., Ltd. expects some demand adjustments next year in areas such as mobile and PCs, but also anticipates increased data center investment by major hyperscalers as the AI ecosystem continues to expand. The company said, “The Device Solutions (DS) division is expected to deliver earnings growth surpassing this year’s, thanks to strong growth momentum.”
With major customers requesting increased HBM supply and a significant number seeking to secure long-term memory supplies, Samsung Electronics Co., Ltd. is holding additional LTA negotiations with customers from 10 companies.
Samsung Electronics Co., Ltd. explained, “We have already completed multi-year contracts with 10 large customers. As of now, we are negotiating multi-year contracts with another 10 major customers, and talks with some customers have already reached the final stage.” This raises the likelihood of meeting the company’s goal of having LTAs cover 60–70% of production capacity by 2030.
LTAs are an indicator of how much future demand a company has secured. As the memory shortage continues, LTA agreements are becoming more common because the interests of big tech companies seeking stable supply chains and suppliers looking to reduce the risks of capital investment are aligned.
Samsung Electronics Co., Ltd. also outlined plans to return its remaining shareholder-return funds, estimated at 55 trillion to 75 trillion won, through cash dividends and buybacks of its own shares for cancellation.
Samsung Electronics Co., Ltd. said, “Of this year’s total shareholder-return amount of 90 trillion to 110 trillion won, taking into account 35 trillion won in shareholder returns, including returns already made and the 30 trillion won cash dividend finalized by today’s board resolution, the remaining funds will be in the range of 55 trillion to 75 trillion won.” It added, “We plan to return the remaining funds through cash dividends as well as buy back and cancel a substantial amount of our own shares.”
At its third-quarter earnings conference call that day, Samsung Electronics Co., Ltd. said, “Of this year’s total shareholder-return amount of 90 trillion to 110 trillion won, taking into account 35 trillion won in shareholder returns, including returns already made and the 30 trillion won cash dividend finalized by today’s board resolution, the remaining funds will be in the range of 55 trillion to 75 trillion won.”
It added, “We are discussing a new shareholder-return policy for 2027 and beyond to support continued growth and enhance shareholder returns. To ensure equality among all shareholders, maximize capital allocation and enhance corporate value, we pledge to actively consider and adjust the share of preferred stock in our buybacks, reflecting market conditions when repurchasing and canceling our own shares.”


[email protected] Park So-hyun, Kim Hak-jae, Park Ji-yeon Reporter