Samsung May Lower HBM3E Prices Amid Oversupply Concerns

Samsung recently hinted that it may lower the price of its HBM3E chips. The company says the supply of the 5th-generation memory product now exceeds market demand, affecting prices. While this might lead to a decline in profit margins, it may help secure deals with key customers.

Samsung to adjust its pricing strategy for HBM3E chips

In recent years, the HBM market has grown significantly, thanks to increasing demand for AI chips and high-performance computing (HPC). Alongside Samsung, other memory makers such as SK Hynix and Micron are also producing their own HBM solutions to meet this demand. However, it looks like the supply has now exceeded demand, which is a concern within the industry.

During the recent Q2 2025 earnings conference call, Samsung talked about this situation. The company said (via ZDNET Korea), “For HBM3E products, changes in supply and demand are expected due to increased supply exceeding the growth rate of demand. We expect this to have an impact on market prices for the time being.”

While Samsung did not directly confirm any immediate price cuts, industry analysts consider this statement a strong signal of price reductions. The Korean firm also said that the price of conventional DRAM will increase in the second half of the year. This will result in narrowing the profit margin gap between HBM3E and DRAM products significantly.

Industry watchers expect that if Samsung reduces the price of its 12-layer HBM3E chips, it could attract global tech giant Nvidia. Unfortunately, the company has yet to pass Nvidia’s quality tests for the chip, though this may happen later this year. Recurring issues such as heat and power consumption are said to be delaying the certification process.

Industry leader SK Hynix has already made substantial progress, capturing a large portion of the HBM market. Samsung aims to regain its foothold in this space once it steps into the HBM4 era. The company is currently developing its 6th-generation HBM4 chips, with plans to start mass production next year.