Samsung Commands Premium Prices for HBM

Samsung Electronics has been observed to maintain higher pricing than its rivals due to its consistent supply of High Bandwidth Memory (HBM). This trend is evident as HBM supply constraints persist, driven by the burgeoning AI infrastructure investments. The average quoted price for Samsung Electronics' HBM amounted to $4.50 per gigabit (Gb), surpassing Micron's $4 and SK hynix's $3.60 to $3.80.

This indicates that Samsung's products are priced 12.5% higher than Micron and 18% to 25% more than SK hynix. The specific pricing factors for HBM3E and the upcoming HBM4 remain undisclosed, but industry projections suggest that prices for HBM3E will range from $1.5 to $2.5 per 1Gb and for HBM4 from $3 to $5 per 1Gb, negotiated through long-term agreements.

Samsung Electronics' pricing is attributed to its stable supply capacity, which contrasts with competitors facing volume shortages. As AI data centers prioritize supply schedules over price, a preference for Samsung Electronics' HBM, characterized by mass supply, is on the rise. Samsung's "turnkey" solution, incorporating memory and foundry businesses, is also cited as a competitive edge.

The industry anticipates further price hikes for HBM in the following year, with TrendForce forecasting a 121% increase in the average selling price (ASP) for 2027, attributed to factors such as the growing HBM4 (6th generation) proportion and ongoing supply constraints. Market research predicts that memory supply shortages may endure until next year, as both HBM and general-purpose DRAM vie for advanced processes and wafer production capacity amidst continuous AI infrastructure demand.

Samsung Electronics' financial success in Q3, with operating profits exceeding 100 trillion won, is partly attributed to its HBM segment. Industry experts project a 100% to 150% increase in Samsung's HBM ASP by 2027, driven by the HBM4's industry-leading pricing and its expected sales proportion expanding from 40% in 2026 to 80% in 2027.