Samsung Plans HBM4E Production Ramp-Up Next Year

Samsung Electronics said on its third-quarter earnings call that it would expand HBM4 sales, begin mass production of seventh-generation high-bandwidth memory (HBM4E) in the first half of next year, and increase production in the second half. Foundry revenue is expected to grow by double digits from both the previous quarter and a year earlier. The company also forecast utilization above 100% next year for processes at 8 nanometers and below.

Rising memory prices and expanded HBM4 sales supported Samsung’s semiconductor business. Through the third quarter, the division recorded 249.4 trillion won in cumulative operating profit, accounting for most of the company’s 254 trillion won total. Securities firms expect fourth-quarter operating profit of 117 trillion won and forecast 370 trillion won for the full year. Analysts also said a memory boom and long-term supply agreements (LTAs) with customers would stabilize earnings.

In the third quarter, Samsung’s average selling price for DRAM rose 20% from the second quarter, while NAND prices increased 10%. Kim Jae-jun, head of memory strategy and marketing, said at an earnings briefing on the 29th that investment in AI infrastructure continued to grow and that demand for memory products tailored to new GPUs and CPUs was expanding. Samsung plans to focus supply capacity on AI applications with strong demand, while expecting some adjustment in mobile and PC demand next year. It plans to start HBM4E mass production in the first half and expand output in the second half.

Securities firms expect Samsung’s HBM4 supply to increase in 2027 as shipments of Nvidia’s next-generation Rubin AI accelerators expand. KB Securities forecast that Samsung’s average HBM selling price in 2027 would rise 100% to 150% from this year, and that DRAM prices in next year’s first quarter would increase by double digits from the fourth quarter of this year. Hanwha Investment & Securities forecast Samsung’s operating profit next year at 605 trillion won, about 63% above this year’s projected 370 trillion won.

Samsung’s foundry business improved revenue and profitability from the second quarter, supported by sales of 4-nanometer HBM4 base dies and advanced process products. The company plans to begin mass production in the fourth quarter of Exynos 2700 mobile application processors, built on its second-generation 2-nanometer process. Samsung expects foundry revenue to grow by double digits from both the previous quarter and a year earlier, supported by memory sales and increased sales to customers in the United States and China. In 2027, it expects demand for AI and high-performance computing to drive growth in 4-nanometer and 2-nanometer processes, with production of a major customer’s new 2-nanometer product in the second half improving advanced-process utilization. Demand for processes at 8 nanometers and below is expected to greatly exceed capacity, pushing utilization above 100%.

Unlike the semiconductor business, Samsung’s DX division, which handles finished products, posted an operating loss of 800 billion won in the third quarter. Its mobile business plans to increase sales of the Galaxy S26 series and foldable devices for year-end demand, while focusing its product mix on flagship models and improving hardware and form factors. TV and home appliance results were weak amid rising costs; the division’s third-quarter operating loss was 200 billion won, up from 10 billion won in the previous quarter. Higher raw material and logistics costs affected home appliance results. Samsung’s CFO said the DX division expected to face macroeconomic uncertainty and cost pressures in the fourth quarter, and would focus on improving its earnings structure, AX-based productivity and resource efficiency.

Samsung Electronics said on its third-quarter earnings call that it would expand HBM4 sales, begin mass production of seventh-generation high-bandwidth memory (HBM4E) in the first half of next year, and increase production in the second half. Foundry revenue is expected to grow by double digits from both the previous quarter and a year earlier. The company also forecast utilization above 100% next year for processes at 8 nanometers and below.

Rising memory prices and expanded HBM4 sales supported Samsung’s semiconductor business. Through the third quarter, the division recorded 249.4 trillion won in cumulative operating profit, accounting for most of the company’s 254 trillion won total. Securities firms expect fourth-quarter operating profit of 117 trillion won and forecast 370 trillion won for the full year. Analysts also said a memory boom and long-term supply agreements (LTAs) with customers would stabilize earnings.

In the third quarter, Samsung’s average selling price for DRAM rose 20% from the second quarter, while NAND prices increased 10%. Kim Jae-jun, head of memory strategy and marketing, said at an earnings briefing on the 29th that investment in AI infrastructure continued to grow and that demand for memory products tailored to new GPUs and CPUs was expanding. Samsung plans to focus supply capacity on AI applications with strong demand, while expecting some adjustment in mobile and PC demand next year. It plans to start HBM4E mass production in the first half and expand output in the second half.

Securities firms expect Samsung’s HBM4 supply to increase in 2027 as shipments of Nvidia’s next-generation Rubin AI accelerators expand. KB Securities forecast that Samsung’s average HBM selling price in 2027 would rise 100% to 150% from this year, and that DRAM prices in next year’s first quarter would increase by double digits from the fourth quarter of this year. Hanwha Investment & Securities forecast Samsung’s operating profit next year at 605 trillion won, about 63% above this year’s projected 370 trillion won.

Samsung’s foundry business improved revenue and profitability from the second quarter, supported by sales of 4-nanometer HBM4 base dies and advanced process products. The company plans to begin mass production in the fourth quarter of Exynos 2700 mobile application processors, built on its second-generation 2-nanometer process. Samsung expects foundry revenue to grow by double digits from both the previous quarter and a year earlier, supported by memory sales and increased sales to customers in the United States and China. In 2027, it expects demand for AI and high-performance computing to drive growth in 4-nanometer and 2-nanometer processes, with production of a major customer’s new 2-nanometer product in the second half improving advanced-process utilization. Demand for processes at 8 nanometers and below is expected to greatly exceed capacity, pushing utilization above 100%.

Unlike the semiconductor business, Samsung’s DX division, which handles finished products, posted an operating loss of 800 billion won in the third quarter. Its mobile business plans to increase sales of the Galaxy S26 series and foldable devices for year-end demand, while focusing its product mix on flagship models and improving hardware and form factors. TV and home appliance results were weak amid rising costs; the division’s third-quarter operating loss was 200 billion won, up from 10 billion won in the previous quarter. Higher raw material and logistics costs affected home appliance results. Samsung’s CFO said the DX division expected to face macroeconomic uncertainty and cost pressures in the fourth quarter, and would focus on improving its earnings structure, AX-based productivity and resource efficiency.