Samsung Electronics predicts that global demand for AI-focused memory chips will exceed supply and announced it will focus on mass production of its most advanced chips to capitalize on this growth.
The company achieved a record revenue of 26.7 trillion won (approximately $19 billion) from memory chip sales in the third quarter.
This represents a 20% increase compared to the same period last year.Samsung, the world’s largest memory chip manufacturer, will rapidly expand the production of high bandwidth memory (HBM) chips used in artificial intelligence systems and will significantly increase capital expenditures next year.
Samsung executive Kim Jaejune said, “Customer demand will exceed our current capacity in 2025. Demand is unusually high and will accelerate price increases.”
The company’s share value increased after the announcement.
It rose by more than 5%, indicating investor confidence in the return to the AI chip market.Its competitor SK Hynix had similarly predicted an “AI-powered supercycle”. Companies in the sector are expanding their partnerships with giants like Nvidia and OpenAI with next-generation chips like HBM3E and HBM4.
Samsung has already started shipping HBM4 chip samples to customers and plans to move to mass production in 2025.
Due to increasing demand, they are also evaluating capacity expansion options.
