Samsung, SK Hynix Lock In Next Year's HBM Supply and Prices
Both memory makers have allocated limited output to customers before manufacturing, with SK Hynix pointing to HBM4's higher value in pricing talks.
Samsung Electronics and SK Hynix have begun allocating memory output to customers, setting prices and volumes for next year's production before the chips are manufactured, according to digitaltoday.co.kr.
On its third-quarter earnings call, SK Hynix said it had finished negotiating next year's HBM volumes and prices with major customers, with the higher value of HBM4 reflected in pricing. The company added deposit and other enforcement mechanisms to its long-term agreements so that customers' purchase plans turn into actual orders.
Samsung Electronics said on its own third-quarter call that it sold out its 2027 HBM supply at target prices and is still receiving requests for additional volumes from major customers. Because available capacity cannot meet those requests within existing long-term agreements, the company is considering changing its product mix across applications.
Output plans for the fourth quarter
Samsung reported third-quarter DRAM bit shipments up in the mid-to-high single digits from the previous quarter, with average selling prices rising about 20%. It expects fourth-quarter DRAM bit shipments to grow in the mid-to-high teens and plans to raise the share of HBM, server DRAM and SSD sales. SK Hynix plans to increase fourth-quarter DRAM shipments in the mid-20% range while raising the share of server DDR5.
SK Hynix said its third-quarter NAND shipments fell slightly from the prior quarter, but average selling prices rose in the mid-20% range on strong prices and a larger SSD mix. It expects HBM4 to overtake HBM3e as its main product in both shipments and revenue in the fourth quarter.
SK Hynix will bring its M15X fab to maximum capacity by year-end to increase HBM4 production and is shipping HBM4 12-stack products on the schedule agreed with key customers. It will run long-term agreement volumes at more than 50% of capacity and use the remainder according to market conditions and demand for next-generation products. Samsung plans to start mass production of HBM4E in the first half of next year and expand output in the second half.
Quick answers
What HBM products are Samsung and SK Hynix preparing next?
Samsung plans to start mass production of HBM4E in the first half of next year and expand output in the second half. SK Hynix expects HBM4 to become its main product in the fourth quarter and is expanding HBM4 production at its M15X fab.
How much did Samsung's DRAM prices rise in the third quarter?
Samsung's third-quarter DRAM bit shipments rose in the mid-to-high single digits from the previous quarter while average selling prices rose about 20%.