HBM4 revenue more than triples as chipmaker commits W84.4tr to expansion, with 2027 HBM supply already sold out
Samsung Electronics' revenue from its sixth-generation high-bandwidth memory chips (HBM4) more than tripled in the third quarter, and its planned HBM supply for 2027 had already sold out.
During its third-quarter earnings call Thursday, where the chipmaker outlined record capital spending of 84.4 trillion won ($63.2 billion), Samsung said HBM4 accounted for about 60 percent of its total HBM revenue, helping it meet its market share target ahead of schedule. "Negotiations for our 2027 HBM supply have been completed at prices reflecting our product competitiveness, and the volume is already sold out," the company said, adding that major customers continued to request additional supplies.
Samsung said its next-generation HBM4E chips had received positive initial feedback from customers since samples were shipped in May.
The company has also signed long-term memory supply agreements with 10 major customers and is negotiating with another 10, aiming to secure contracts covering 60 to 70 percent of its production capacity by 2030.
Its planned capital spending for 2026 represents an increase of 31.7 trillion won from last year, with 76.8 trillion won allocated to its semiconductor business and 3.9 trillion won to displays. Third-quarter spending reached 29 trillion won, including 27.2 trillion won for semiconductors.
Samsung is also considering new foundry plants in the US and South Korea as demand for advanced chipmaking capacity outpaces supply.
"Capacity expansion at advanced nodes is not keeping pace with demand," the company said, adding that it was reviewing additional fabs to meet growing demand for 2-nanometer chips used in AI and high-performance computing.
Its first foundry plant in Taylor, Texas, has begun cleanroom operations and equipment installation, while the company also plans to expand advanced packaging capacity.
Samsung expects the semiconductor upturn to continue through 2027 on sustained AI investment and tight chip supply, with memory shortages potentially extending into 2028. The company forecast stronger earnings next year, led by its chip business, despite continued cost pressures on consumer electronics.
The outlook came as Samsung reported record third-quarter revenue of 195.25 trillion won, up 126.9 percent on-year, and operating profit of 107.44 trillion won, up 783.1 percent. Both figures marked a fourth consecutive quarterly record, with Samsung becoming the first global tech company to surpass 100 trillion won in quarterly operating profit, according to the company. Net profit surged 514.6 percent on-year to 75.14 trillion won, up 4.9 percent from the previous quarter.
Its semiconductor-focused Device Solutions division posted revenue of 147.1 trillion won and operating profit of 106.5 trillion won, while the Device eXperience division, which oversees smartphones, TVs and home appliances, recorded revenue of 52.1 trillion won and an operating loss of 800 billion won.
Samsung Display reported revenue of 8 trillion won and operating profit of 1.1 trillion won, while Harman posted revenue of 4.3 trillion won and operating profit of 600 billion won.
Separately, Samsung's board approved a third-quarter cash dividend of 4,601 won per common and preferred share, totaling about 30 trillion won, payable Nov. 27.
Under its 2026 shareholder return plan of 90 trillion won to 110 trillion won, Samsung estimates that 55 trillion won to 75 trillion won remains available after payouts already made or committed.
"The return of the remaining funds will include a substantial share repurchase and cancellation program, along with cash dividends," the company said.
Samsung said it would also consider increasing the proportion of preferred shares in its buyback program and finalize its next shareholder return policy in late January 2027.
yeeun@heraldcorp.com
