As Samsung transitions from its HBM3 and HBM3E variations of HBM memory to HBM4, the company is reportedly reallocating some of its HBM production capacity to regular DRAM to meet demand. Discussions within the company focus on converting approximately 30-40% of the current capacity from the 10 nm-class, fourth-generation 1a DRAM process to the 10 nm-class, fifth-generation 1b lines used for general-purpose DRAM. This includes DDR5, LPDDR5X, LPDDR6, and GDDR7 memory. With additional investment to repurpose mature process nodes like 1z, Samsung expects to free up the equivalent of about 80,000 wafers per month of 1b capacity.

While HBM typically offers higher margins for companies like Micron and SK Hynix, Samsung's internal estimates show that the operating profit for a 12-hi HBM3E stack is around 30%. In contrast, the near-term expectations for general-purpose DRAM exceed 60%. These margin differences, along with forecasts of a significant decline in average selling prices for 12-hi HBM3E and limited incremental demand from the largest HBM customer, have reduced the incentive to expand HBM3E production.
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