KB Securities said on the 11th that Samsung Electronics(005930) is poised for a larger growth trajectory, driven by expanding market share in the High Bandwidth Memory (HBM) market and improving Production yield at its foundry.
Kim Dong-Won, an analyst at KB Securities, said, "Samsung Electronics, which recorded a 33% share of the HBM market in the second quarter this year, is expected to approach a 40% share in the fourth quarter," adding, "That is because HBM4 sales in the third quarter will increase more than threefold from the previous quarter, and HBM4 is expected to account for more than 60% of total HBM sales in the second half."
Samsung Electronics has secured a concrete roadmap, including full-scale mass production of HBM4, sample supplies of HBM4E to key customers, an HBM5 architecture applying 1c core die and 2-nanometer base die, and even next-generation ZHBM.
In particular, ZHBM, which dramatically improves heat generation and bandwidth, is expected to expand strategic growth opportunities for the HBM business by offering a range of options, including Samsung Electronics' one-stop solution supply capabilities (base die, interlayer, packaging, HBM) and a strategic partnership with TSMC.
The foundry business is also expected to enter a full-fledged growth trajectory. Samsung's foundry has stabilized its 4-nanometer Production yield at over 80%, while the 2-nanometer GAA yield has quickly improved to over 70%, restoring mass-production competitiveness in leading-edge processes.
Kim said, "Starting in the third quarter this year, the foundry business is likely to swing to profit, backed by full-scale mass production of 4-nanometer LPU and stabilized yields," adding, "The 4-nanometer yield has approached a level competitive with TSMC, and the 2-nanometer yield has quickly improved from below 50% at the start of the year, making it highly likely that we will secure a major U.S. customer within the year."
Kim added, "Samsung Electronics is the only company that has secured turnkey solution supply capabilities spanning HBM, foundry, and packaging beyond standalone memory supply, so its growth trajectory will become even larger."