Samsung's HBM memory chip sales rise by 50% at a crucial time

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Samsung, the world's biggest memory chip maker, faced the worst period in its history last year. It faced losses due to a slump in the memory segment and lower memory chip prices. It also faced difficulties in selling its high-bandwidth memory (HBM) chips to Nvidia, the biggest AI firm. However, its worst days are over, and its HBM sales are rising at a crucial time.

Samsung's HBM memory chip sales rose 50% in Q2 2024

It is being reported that Samsung's HBM sales increased by more than 50% in the second quarter of this year. Earlier today, the company posted its earnings for Q2 2024, and it managed to achieve an operating profit of over KRW 10 trillion (~$7.2 billion) for the first time in the past seven quarters. These results are due to higher memory chip (DDR, HBM, and SSD) sales during the quarter.

Kim Jae-joon, Vice President of Samsung Electronics, said, “The memory market continued to be strong in the second quarter, fueled by strong demand for generative AI. HBM sales increased by more than 50 percent on-quarter,” during the company's Q2 2024 earnings call.

He also said that Samsung will start the mass production of HBM3E in the third quarter of this year, indicating that an earlier report about those chips getting Nvidia's certification by November 2024 was closer to reality. The South Korean firm recently got Nvidia's certification for its HBM3 chips, but those chips have only been certified for AI chips that are limited to the Chinese market.

Samsung is already working on its sixth-generation HBM chips, HBM4, and those chips could be ready for mass production by the first half of next year. Its rivals Micron and SK Hynix are also expected to start production of HBM4 chips by that time.

For the second quarter of 2024, Samsung posted revenue of KRW 28.6 trillion (~$20.8 billion) and an operating profit of KRW 6.45 trillion (~$4.7 billion). The company's chip business, Samsung Device Solutions, recovered from losses in Q2 2024 after five consecutive quarters.

Image Credits: Samsung

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Asif Iqbal Shaik - Senior Editor

[email protected]

First Samsung device: T100

Asif is a computer engineer turned technology journalist. He has been using Samsung phones since 2004, and his current smartphone is the Galaxy S21 Ultra. He loves headphones, mechanical keyboards, and PC hardware. When not writing about technology, he likes watching crime and science fiction movies and TV shows.

Business AI HBM HBM3 HBM3E HBM4 Samsung Device Solutions Samsung Semiconductor

Samsung's HBM memory chip sales rise by 50% at a crucial time

Samsung's HBM memory chip sales rose 50% in Q2 2024

Asif Iqbal Shaik - Senior Editor

[email protected]

First Samsung device: T100

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