Samsung shifts half of HBM production to HBM4 chips

Samsung Electronics has dedicated roughly half of its high-bandwidth memory production capacity to sixth-generation HBM4 chips, a move designed to capitalize on surging demand for AI memory and close the gap with rival SK Hynix.

The South Korean semiconductor industry confirmed on June 24 that Samsung recently allocated approximately 75,000 of its 150,000 monthly HBM DRAM wafer inputs to HBM4, with the remaining capacity assigned to 12-layer HBM3E. Production of the 8-layer HBM3E, which faces weaker demand, has been temporarily halted, with those resources redirected to HBM4.bitget+1

$1 Billion Milestone in Four Months

The production shift comes as Samsung's HBM4 revenue reportedly surpassed $1 billion just four months after the company began mass shipments in February — a first in the industry. Revenue is expected to exceed $1.2 billion by the end of June, according to Yonhap News Agency, with industry insiders projecting full-year HBM4 sales could surpass $10 billion.youtube+3

Samsung announced in February that it had begun mass production of HBM4 with a processing speed of 11.7 gigabits per second, exceeding the industry standard by approximately 46 percent. The company has since moved quickly to extend its lead, shipping the industry's first HBM4E samples to customers in late May.news.samsung+2

Racing to Reclaim Market Share

The aggressive capacity reallocation reflects Samsung's urgency to recover ground lost to SK Hynix, which surpassed Samsung's market capitalization for the first time in late June to become South Korea's most valuable listed company. SK Hynix held a 57 percent share of the global HBM market in the fourth quarter of 2025, compared with Samsung's 22 percent, according to Counterpoint Research data cited by Reuters.htx+1

Analysts expect Samsung's position to improve as HBM4 shipments scale. One estimate from Silicon Analysts places Samsung's current HBM share in the range of 35 to 40 percent, while Samsung's overall DRAM market share rebounded to 38 percent in the first quarter of 2026. The company has said it anticipates HBM sales will more than triple in 2026 compared with the prior year.counterpointresearch+2

The capacity pivot underscores a broader industry dynamic: as AI model sizes continue expanding, chipmakers are racing to deliver the highest-bandwidth memory products, with HBM4 commanding an estimated price premium of roughly $500 per stack compared with $300 for HBM3E.siliconanalysts