Samsung May Use Low-Cost Strategy in HBM4 Battle

According to South Korean media outlet The Bell, Samsung Electronics has begun producing sixth-generation high-bandwidth memory (HBM4) samples on an unusually large scale, aiming to break into NVIDIA's ecosystem with a bold low-price strategy. The move reflects Samsung's push to regain momentum in the HBM market, where it has recently lost ground.

Despite being a powerhouse in DRAM, Samsung has faced setbacks in advanced memory. Its HBM3E chips failed to pass NVIDIA's quality tests, causing its market share to fall sharply from 41% in the first half of 2023 to just 17% a year later. By contrast, SK Hynix now dominates with 62%, while Micron holds around 21%.

Reports suggest Samsung has already produced around 10,000 HBM4 wafers—an unusually high number for sample runs. Analysts believe this aggressive output is linked to yield challenges, with Samsung compensating by flooding the sample stage to secure enough qualified chips. The company is also introducing sixth-generation 10nm-class (1c) DRAM in HBM4, while SK Hynix and Micron continue with fifth-generation (1b) DRAM—the same used in HBM3E. Since 1c DRAM is not yet in commercial use, Samsung faces an uphill battle in technology maturity.

To balance that disadvantage, Samsung is reportedly preparing to slash margins. While 12-layer HBM4 is expected to be priced 60–70% higher than 12-layer HBM3E, SK Hynix aims for a 30–40% premium. Samsung, however, may cut premiums to below 20%, prioritizing market share over profits.

Currently, Samsung's HBM3E is still awaiting NVIDIA's qualification, leaving it at a competitive disadvantage. However, many analysts believe the real showdown will begin with HBM4. The pricing strategy mirrors Samsung's past approach in the DRAM market, where it famously used aggressive price wars to hold its lead during oversupply cycles. Whether Samsung can repeat that playbook in HBM4 remains one of the hottest questions in the semiconductor industry.