In major news for the HBM markets, Samsung is reportedly implementing a price drop for its HBM3E process to gain interest from key customers.
Samsung's HBM3E Could See a Price Decrease Amid High Inventory Levels, Forcing Competitors to Adjust As Well
Regarding Samsung and its HBM business, it has been a rough venture for the Korean giant so far, given that the firm still hasn't managed to secure orders from NVIDIA, a development that will prove to be a massive breakthrough. However, it seems like the Korean giant plans to come up with a more aggressive approach, and in its recent Q2 earnings call, the company has disclosed an impact on "HBM prices", claiming that the supply has exceeded the demand on their end, and slashing prices could be one of the ways Samsung manages to attract interest.
For HBM3E products, changes in supply and demand are expected due to increased supply exceeding the growth rate of demand. We expect this to have an impact on market prices for the time being.
- Samsung via ZDNet
Samsung's Q2 earnings weren't optimistic at all. The company saw a massive 94% decline in chip revenue, with operating profits reducing massively as well. On the chip front, the Korean giant wasn't able to secure industry interest until recently, when it revealed a massive deal with Tesla, worth $16.5 billion. At the HBM front, Samsung has been showing some progress, especially by seeing adoption by AMD recently, but despite that, the firm hasn't managed to tap in NVIDIA's supply chain for now, and more importantly, has failed to compete with SK hynix in the market as well.
However, a HBM price drop could significantly tilt the scale in Samsung's favor, given that the company has one of the largest production lines in this segment, which means that by offering a cheaper HBM3E process, either competitors would have to drop prices, or Samsung will gain a portion of their market share. But, it remains to see how the price change reflects in Samsung's business for now, but it seems like competitors like SK hynix and Micron might need to switch things up.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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