Samsung Cuts HBM Production Target to 170,000 Units Per Month

According to industry insiders, Samsung Electronics has revised its target for high bandwidth memory (HBM) production capacity for the end of 2025, reducing it by more than 10% from an original monthly goal of 200,000 units to 170,000 units. This adjustment comes as the company faces delays in volume production for key clients, leading to a more cautious approach toward investments in advanced HBM technology.

To enhance its competitiveness in the semiconductor sector, Samsung plans to directly deploy research and development personnel to its manufacturing facilities. This initiative aims to improve communication and collaboration with front-line production teams.

Until the second quarter of last year, Samsung had projected an increase in HBM capacity to between 140,000 and 150,000 units per month by the end of 2024, with plans to ramp up to 200,000 units monthly by the end of 2025. This shift reflects strategies by its main competitors to boost HBM output, alongside positive prospects for the completion of quality testing by major clients, including NVIDIA.

During the second quarter earnings call, Samsung announced plans to begin mass production and supply of HBM3E 8-layer units in the third quarter, followed by 12-layer units in the second half of the year. Samsung anticipates that HBM3E will quickly capture 10% of HBM sales in the third quarter, rising to 60% by the fourth quarter.

However, conditions have changed in the latter half of this year. The latest generation of HBM3E (fifth-generation HBM) 8-layer and 12-layer products has experienced delays in passing NVIDIA's quality tests, prompting Samsung to conservatively adjust its HBM production plans for the end of this year.

In terms of production capacity, Samsung's target for HBM production in 2025 has been lowered from 13-14 billion GB to approximately 12 billion GB. An insider explained, "Given the sluggish HBM market, Samsung Electronics has decided to slow its pace of equipment investment," adding, "Discussions on additional investments will only commence after volume production supply to NVIDIA begins."