STOCKS | Samsung Closes HBM Share Gap With SK Hynix, Targets More Than Doubling 2nm Orders

Samsung Electronics (005930) became the first technology company globally to report quarterly operating profit above 100 trillion won. According to Sina Finance, Kim Jae-joon, vice president of memory at Samsung’s Device Solutions Division, said on a third-quarter earnings call on the 29th that the company appeared to have reached its second-half target of matching its DRAM share in the HBM market. HBM4 revenue doubled quarter over quarter and accounted for about 60% of HBM revenue. Industry data put Samsung’s HBM share in the upper range of the mid-30% level in the third quarter, up from about 20% in the first quarter and 33% in the second. That narrowed the gap with SK hynix, whose share was about 50%. Kim said capacity for next year was sold out, with additional orders continuing to come in and revenue expected to rise from the fourth quarter. Samsung plans to mass-produce HBM4E in the first half of next year and ramp up output in the second half. HBM4 demand is particularly strong for AI chips including NVIDIA’s Vera Rubin. Samsung has signed long-term supply agreements with 10 major customers and is negotiating with 10 more. It aims for these agreements to cover 60% of total capacity by 2030; the number of customers signed has doubled from the five disclosed at the end of July. Eugene Investment & Securities forecasts the average HBM price will rise from $1.65 per gigabit this year to $3.48 next year. Samsung’s capital spending, focused mainly on fabs, reached 84.4 trillion won this year, up 60% year over year. It plans to add more than 10 trillion won for facilities in Yongin, Gwangju in Jeollanam-do, and Taylor, Texas. Foundry vice president Kang Seok-chae said demand for advanced processes of 8nm and below exceeds capacity, and utilization could top 100% in the second half. Samsung aims to more than double 2nm orders from last year. The company plans to begin construction of its second Taylor fab this year and is discussing orders for its 1.4nm process, targeted for 2029.