Samsung Electronics reportedly reduces HBM memory production capacity planning due to supply delays to major customer Nvidia

On October 10, according to a report by Korean media ZDNET Korea local time today, industry sources said that Samsung Electronics has lowered its HBM production capacity forecast to 170,000 wafers per month by the end of 2025 due to delays in supplying HBM3E memory to major customer Nvidia.

IT Home learned that Samsung Electronics' goal in the second quarter of this year is to achieve a monthly HBM memory production capacity of 140,000 to 150,000 wafers by the end of this year, and further increase it to 200,000 wafers by the end of next year, in response to its main rival SK Hynix's production increase plan.

However, Samsung's HBM3E memory failed to pass Nvidia's quality test as expected, so Samsung Electronics slowed down the introduction of equipment required for HBM production and postponed the possible timing of additional investment until it confirmed mass production supply to Nvidia. This ultimately led to a decline in overall theoretical production capacity.

Considering that HBM memory production capacity is limited but demand is strong, Samsung Electronics' reduced production expansion means that the supply and demand relationship will become more tense.

The same Korean media stated on the 2nd of this month that Nvidia went to Samsung's Pyeongtaek campus at the end of September to conduct an on-site inspection of the HBM3E 8H products. It is reported that the previous quality problems have been resolved, but this does not mean that Samsung's products are completely qualified.

In its 2024Q2 earnings call, Samsung Electronics expected that its HBM3E products would account for 60% of its overall HBM memory sales in the fourth quarter of this year. It now appears that achieving this goal faces considerable difficulty.