[News] Samsung’s 8-layer HBM3e to Start Mass Production in Q3, Driving HBM Sales to Soar 3-5 Times in 2H24

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Samsung Electronics, which has been surround by concerns that its HBM3e products are still struggling to pass NVIDIA’s qualifications, has confirmed in its second quarter earnings call that the company’s fifth-generation 8-layer HBM3e is currently undergoing customer valuation, and is scheduled to enter mass production in the third quarter, according to a report by Business Korea.

TrendForce notes that Samsung’s recent progress on HBM3e qualification seems to be solid, and we can soon expect both 8hi and 12hi to be qualified in the near future. The company is eager to gain higher HBM market share from SK hynix so its 1alpha capacity has reserved for HBM3e. TrendForce believes that Samsung is going to be a very important supplier on HBM category.

Driven by the momentum, the report from Business Korea, citing an official speaking at the conference call on July 31^st, states that the share of HBM3e chips within Samsung’s HBMs is anticipated to surpass the mid-10 percent range in the third quarter. Moreover, it is projected to speedily grow to 60% by the fourth quarter.

According to Samsung, its HBM sales in the second quarter already grew by around 50% from the previous quarter. Being ambitious about its HBM3 and HBM3e sales, Samsung projects its HBM sales will increase three to five times in the second half of 2024, driven by a steep rise of about two times each quarter.

Samsung has already taken a big leap on HBM as its HBM3 chips are said to have been cleared by NVIDIA last week. According to a previous report by Reuters, Samsung’s HBM3 will initially be used exclusively in the AI giant’s H20, which is tailored for the Chinese market.

On the other hand, the South Korean memory giant notes that it has completed the preparations for volume production of its 12-layer HBM3e chips. The company plans to expand the supply in the second half of 2024 to meet the schedules requested by multiple customers, according to Business Korea. The progress of its sixth-generation HBM4 is also on track, scheduled to begin shipping in the second half of 2025, Business Korea notes.

Samsung Electronics reported higher-than-expected financial results in the second quarter, with a six-fold year-on-year increase in net income, soaring from KRW 1.55 trillion won (USD 1.12 billion) to KRW 9.64 trillion (USD 6.96 billion), as demand for its advanced memory chips that are crucial for AI training remained strong.

SK hynix, as the current HBM market leader, has expressed its optimism in securing the throne as well. The company reportedly expects its HBM3e shipments to surpass those of HBM3 in the third quarter, with HBM3e accounting for more than half of the total HBM shipments in 2024. In addition, it expects to begin supplying 12-layer HBM3e products to customers in the fourth quarter.

Micron, on the other hand, has reportedly started mass production of 8-layer HBM3e as early as in February. The company reportedly plans to complete preparations for mass production of 12-layer HBM3e in the second half and supply it to major customers like NVIDIA in 2025.

Read more

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(Photo credit: Samsung)