Samsung HBM4 Prices Set to More Than Double by 2027
Samsung's HBM4 prices are expected to surge by over 100% in 2027 as the industry shifts toward advanced AI memory technology.
Samsung Electronics is poised for a massive windfall in the semiconductor market, with its high-bandwidth memory (HBM) prices expected to more than double by 2027. As the global tech industry shifts toward the next generation of artificial intelligence infrastructure, the demand for advanced memory is driving unprecedented pricing power for major manufacturers.
The HBM4 Revolution
According to a report from KB Securities, Samsung’s HBM selling prices are projected to rise by over 100 per cent year-on-year in 2027. This surge is largely attributed to the transition to HBM4, the next major generation of high-speed memory designed to work alongside advanced AI processors.
As Samsung negotiates 2027 supply terms with major customers, the company is reportedly seeking premium pricing for its next-gen tech. Industry reports suggest Samsung has proposed asking prices in the mid-to-high USD 4 range per gigabit for HBM4. To put this in perspective, its current HBM3E products are priced at approximately USD 1.50 per gigabit—meaning the new technology could command more than three times the price of its predecessor.
Market Dominance and Revenue Shifts
The shift in product mix is expected to drastically alter Samsung's revenue streams. Analysts predict that HBM4 will account for roughly 80 per cent of Samsung’s total HBM revenue in 2027, a significant jump from the 40 per cent share seen this year.
Samsung is aggressively working to close the competitive gap with SK hynix, which has currently led the HBM market during the ongoing AI boom. The move toward HBM4 is central to Samsung's strategy to reclaim market leadership and maximize profitability from the AI-driven semiconductor surge.
Global Supply Tightness and DRAM Competition
The price hike is not unique to Samsung. TrendForce has forecasted that the global HBM market's blended average selling price will rise by 121 per cent year-on-year in 2027. This trend is being fueled by two primary factors:
- Tight Supply: High demand for AI hardware is keeping supply levels constrained.
- Product Upgrades: A growing market share of newer, more expensive HBM4 and HBM4E products.
Interestingly, the pressure on pricing is also being felt in the conventional DRAM market. While HBM and standard DRAM compete for the same advanced production capacity, the profitability dynamics are shifting. TrendForce noted that in the first quarter, DDR5 64-gigabyte server memory actually overtook HBM in per-wafer revenue. This shift weakens the long-held assumption that HBM is always the most profitable use of wafer capacity, giving suppliers even more leverage to push for higher HBM contract prices.
The Road Ahead for Samsung
While the outlook for HBM4 pricing is bullish, Samsung's ultimate success will depend on several critical variables. The company's ability to translate these higher prices into stronger earnings will hinge on:
- Finalizing favorable contract terms with large-scale customers.
- Maintaining high production yields for the complex HBM4 architecture.
- Successful customer qualification and integration into AI hardware.
- Strategic allocation of wafer capacity between HBM and conventional DRAM.