SEOUL, July 31 (AJU PRESS) — Samsung Electronics announced Wednesday that it will begin mass production of advanced high-bandwidth memory (HBM) chips in the third quarter of 2024 to meet the growing demand for high-performance chips used in artificial intelligence processors.
During its second-quarter 2024 earnings call, Kim Jae-jun, vice president of memory strategic marketing, said Samsung plans to produce and supply 8-layer HBM3E products in the third quarter, with 12-layer HBM3Es slated for the second half of the year.
Kim's remark indicated that Samsung’s fifth-generation HBM3E chips might soon pass quality tests by AI chip giant Nvidia. Samsung anticipates Nvidia’s approval for the HBM3E, while its fourth-generation HBM3 chips have already cleared by Nvidia, according to news reports.
Kim reported that HBM sales increased by over 50 percent in the second quarter compared to the previous quarter.
“HBM3 is expanding mass production to all GPU customers, and sales recorded nearly threefold growth compared to the previous quarter,” he said.
Samsung plans to expand its HBM production capacity in the latter half of the year, expecting the proportion of HBM3E sales within total HBM sales to exceed the mid-10 percent range in the third quarter and reach 60 percent by the fourth quarter.
The proportion of HBM sales in its chip business is projected to increase more than 3.5 times in the second half compared to the first half, he said.
Samsung plans to more than double its HBM production next year compared to 2024.
The company is also developing the sixth-generation HBM4, targeting shipment in the second half of 2025.
“We are developing custom HBM optimized for customer-specific requirements and are currently discussing detailed specifications with multiple customers,” Kim said.
Earlier in the day, the tech giant reported its net profit surged nearly sixfold year-on-year in the second quarter, largely driven by a rebound in chip prices amid the artificial intelligence boom.
Net income surged 471 percent to 9.84 trillion won ($7.13 billion) during the April-June period, a 470 percent increase from a year earlier.
Operating profit jumped 1,462 percent to 10.44 trillion won during the same period, while revenue grew 23.44 percent to 74.68 trillion won.
This is the first time in seven quarters that Samsung's quarterly operating profit has surpassed 10 trillion won. The operating profit for the quarter alone exceeds the total for 2023, which was 6.57 trillion won.
The surge was primarily driven by the semiconductor division, which reported 28.56 trillion won in revenue and 6.45 trillion won in operating profit. The chip division’s sales surpassed those of TSMC for the first time in two years.
In the mobile sector, Samsung posted 42.7 trillion won in sales and 2.7 trillion won in operating profit. It anticipates growth in premium mobile products driven by AI demand and new form factors. The company will focus on expanding its Galaxy ecosystem with AI-enhanced experiences.