Samsung Takes a Pragmatic Approach to the HBM Market

Samsung is taking a careful and practical strategy to strengthen its position in the HBM (High Bandwidth Memory) market. As demand for cutting-edge memory increases, the company is focusing on expanding the supply of HBM3E to major tech companies (beyond Nvidia), while improving the yield of the next-gen HBM4 for greater profitability.

Samsung plans to expand HBM3E supply while aiming to boost HBM4 yields

After multiple setbacks, last month, Samsung entered Nvidia’s HBM supply chain with its HBM3E. This product has achieved a 70% yield per wafer, meaning most of the chips made are usable. More importantly, it is about 30% cheaper than rival SK Hynix’s offering. So, the company has a competitive edge in pricing, which could help attract clients around the world.

Since SK Hynix has reportedly saturated its production capacity with NVIDIA, the company aims to cater to the remaining demand in the market. Specifically, it wants to grow sales to Broadcom and AMD, both of which maintain strong partnerships.

Meanwhile, Samsung is gearing up to begin mass production of HBM4 early next year. The chip uses advanced 1c DRAM cores paired with a 4nm logic die. However, yields of the DRAM are currently around 50%, which is below the 70% manufacturers need for profitable mass production.

“Even if we optimistically assume that the current yield level will be maintained until mass production, it will only reach the break-even point (BEP),” said a semiconductor industry insider (via DealSite). So, the company is trying hard to reach a recommended yield to respond to the memory industry’s HBM4 transition next year.

Industry sources say that if Samsung fails to meet expectations (likely related to the HBM4’s performance, heating, etc.), Nvidia could allocate orders to competitors like SK Hynix. This will greatly impact Samsung’s revenue and market share. Meanwhile, the company has reportedly sold all of its planned 2026 production of its HBM4. For now, all eyes are on the yield improvement of HBM4, as it will determine whether it can make money or suffer losses.