Samsung HBM Share Nears 40% as 2nm Yield Tops 70%

Samsung Electronics anticipates a rise in its share of the high-bandwidth memory (HBM) market, reaching around 40% by the fourth quarter, up from 33% in the second quarter, according to a KB Securities report. The company's HBM4 revenue is projected to more than triple quarter-over-quarter in the third quarter, with HBM4 accounting for more than 60% of total HBM revenue in the second half of the year.

Samsung is currently mass-producing HBM4 and supplying samples of the upcoming HBM4E, with a product roadmap extending to HBM5, which will utilize a 2nm base die. The foundry division's production capabilities are also improving, with the 2nm gate-all-around (GAA) process yield rate rising above 70%. This progress is crucial, as it is anticipated to enhance foundry earnings and the competitiveness of base dies, essential for next-generation HBM.

The shift in supply-side leadership is also noticeable, with HBM4's custom market likely to experience price increases, potentially shifting pricing power toward memory manufacturers. As global tech giants invest in AI infrastructure, memory supply shortages are expected to persist through 2028, with demand for long-term supply agreements persisting.

Samsung Electronics maintains a "Buy" rating with a target price of 600,000 won, reflecting growth expectations in its core business and potential shareholder-return measures. Despite an intraday correction, the company's shares were trading at 257,750 won, marking a 4.18% decrease from the previous day, with a market capitalization of around 1,506.88 trillion won.