Samsung's HBM Memory Prices to More Than Double in 2027: Report

Samsung's high-bandwidth memory (HBM) prices are projected to more than double by 2027. This surge is driven by the industry's shift to HBM4 and increasing demand from the AI sector, according to a report from KB Securities.

Samsung Electronics’ high-bandwidth memory prices are expected to more than double next year as the industry shifts to HBM4 and tight DRAM supply gives memory-makers more room to raise contract prices, The Korea Herald reported, citing KB Securities, on Wednesday.

HBM is the high-speed memory used alongside advanced AI processors, making it one of the most closely watched parts of the semiconductor market as spending on artificial intelligence infrastructure grows.

Samsung's HBM4 Pricing and Market Position

KB Securities expects Samsung’s HBM selling prices to rise more than 100 per cent on-year in 2027. It also said Samsung’s HBM4 could be contracted at the highest price among the three major suppliers, Samsung, SK hynix and Micron.

The forecast comes as Samsung negotiates 2027 supply terms for HBM4, the next major generation of the technology, with large customers. Local media reports have said the company proposed prices in the mid-to-high USD 4 range per gigabit, more than three times the roughly USD 1.50 per gigabit for its current HBM3E products. Those figures are reported asking prices, not disclosed final contract prices.

Samsung has not publicly confirmed individual 2027 HBM4 terms. KB Securities expects HBM4 to account for about 80 per cent of Samsung’s HBM revenue next year, up from around 40 per cent this year. Samsung began commercial HBM4 shipments in February as it sought to close the gap with SK hynix, which has led the HBM market through the current AI boom.

Broader Market Trends and Price Pressures

The expected price increase is broader than Samsung. TrendForce forecast on Sept 29 that the global HBM market’s blended average selling price would rise 121 per cent year-on-year in 2027. That estimate reflects both tight supply and a growing share of newer, more expensive HBM4 and HBM4E products.

The pricing pressure also comes from conventional DRAM, the memory used across servers, PCs and other devices. HBM and standard DRAM draw on the same advanced production capacity. But HBM is usually priced through longer-term contracts, so its prices have adjusted more slowly than conventional DRAM during the recent memory upturn.

TrendForce said DDR5 64-gigabyte server memory overtook HBM in per-wafer revenue in the first quarter. That weakens the old assumption that HBM is always the more profitable use of scarce wafer capacity and gives suppliers more reason to push for higher HBM prices. TrendForce expects conventional DRAM contract prices to rise another 10 to 15 per cent quarter-on-quarter in the fourth quarter and HBM supply to remain tight through 2027.

Future Outlook for Samsung

For Samsung, the key question is whether higher HBM4 pricing can translate into stronger earnings as shipments rise. The outcome will still depend on final contract terms, production yields, customer qualification and how much wafer capacity Samsung commits to HBM. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)