Samsung may outsource DDR5 production to make more expensive HBM

The AI revolution has led to an insatiable demand for high-bandwidth memory. This has worked out very well for memory companies like Samsung Electronics, because their HBM chips are now fetching top dollar in the market.

Samsung wants to further capitalize on this generational opportunity, which is why the company is now expected to outsource conventional DDR5 module production so that the remaining capacity can also be used for HBM production.

According to reports out of South Korea, Samsung plans to outsource all additional production of conventional DDR memory modules so that in-house capacity is used for high-value products such as HBM.

Sources mentioned in the report claims that instead of expanding in-house production of conventional DDR5 memory modules as SSDs used in PCs, servers, and laptops, the company is increasing allocations to oursourcing partners.

It's said to have called upon partners to not just increase their investment in enhancing production lines but also to implement their capacity expansions ahead of schedule.

Some of Samsung's outsourcing partners who are in the procession of expansion include Dreamtech, which has begun mass production of DDR5 modules in India, Hanyang Digitech which is making memory modules in Vietnam, and SFA Semicon that makes memory chips in the Philippines.