Samsung’s HBM4 price is three times higher than the previous generation, challenging SK Hynix to seize AI storage pricing power

Abstract:

Samsung’s 2027 HBM4 supply quotation to major customers falls in the mid-to-high price range of US$4 (approximately 26.86 yuan) per Gb, which is three times more than the current HBM3E price of approximately US$1.50 (approximately 10.07 yuan).

Semiconductor industry insiders pointed out that

Samsung has started negotiations on the HBM4 supply contract next year, hoping to convert higher transmission speeds and stable supply capabilities into price premiums and increase profitability as product generations change.

The main support for Samsung’s quotation comes from its confidence in the performance of HBM4.

Samsung HBM4 can stably reach a data transmission speed of 11.7Gb per second, up to 13Gb per second, and is said to be at the highest level in the industry.

Unlike general DRAM, HBM mainly supplies through annual long-term contracts. The customer will negotiate with the manufacturer in advance on the purchase volume and price for the next year to ensure the required supply, and the manufacturer will arrange production according to the order.

It is reported that a considerable part of the negotiations on the supply of major HBM next year have been completed, and price negotiations are expected to enter the final stage this month. However, Samsung is currently proposing a supply quotation, and the final transaction price still depends on the outcome of negotiations with customers.

As AI accelerators have higher requirements for storage performance, the focus of competition in the HBM market has gradually changed. In the past, suppliers first had to pass certifications from major customers such as Nvidia, enter the supply chain, and then expand shipments. After entering the HBM4 generation, even for products of the same generation, differences in transmission speed and power consumption efficiency will increasingly affect prices.

Samsung hopes to strengthen its competitiveness. SK Hynix used to be the leader in the HBM market, while Samsung is trying to win customers to accept higher prices and expand its market influence through higher-spec products.

TrendForce, a research firm, predicts that driven by the increasing proportion of HBM4 and supply shortages, the average selling price of HBM will increase by 121% in 2027 compared with this year. Micron also mentioned in its recent earnings call that HBM prices may rise significantly next year. This average selling price forecast also reflects the shift in product mix to the higher-priced HBM4, as well as the impact of tight supply and demand. It does not mean that all HBM products will increase by the same amount.