Samsung Warns of HBM3E Oversupply and Potential Price Drops
Samsung has told its backers that its making of HBM3E memory is moving too fast for market needs. They think this will push down prices for a while.
Less Gains, More Fight in a Crowded Market
The Samsung team says that the money made from top HBM3E and simple DRAM will get closer as standard memory costs go up. This change might not let profit grow if more HBM3E is sold.
Big players like Nvidia and AMD are now using more packed 12-layer HBM3E for their new AI tools. Rival firms SK Hynix and Micron are also making these, raising the chance of too much stuff before enough need is there.
A Strategic Push to Regain Market Leadership
The company’s chip arm is losing big, with profits down 94% from last year. Now, Samsung aims to make HBM3E cheaper to steal sales back from Nvidia, who has leaned towards SK Hynix.
To keep stable, Samsung is also making more of other memory types, like 128 GB DDR5, 24 GB GDDR7, and 8th-gen V-NAND. A big $16.5 billion deal to make chips for Tesla’s next AI should help too.
The Tough Game of Strategic Trade-offs
Insiders say Samsung has cut prices while Nvidia checks its 12-layer HBM3E. This shows that being ahead might rely more on making costs low and keeping quality high than just raw power.
Samsung must get ahead in making good, cheap memory to win back the top spot in AI memory. But any wrong move in how much they make could make the extra supply problem worse, which is already hitting HBM3E prices.