October 16, 2024 /SemiMedia/ — According to industry insiders, Samsung Electronics has reduced its high bandwidth memory (HBM) production target by over 10%, cutting it from 200,000 units per month to 170,000 by the end of 2025. This adjustment follows delays in mass production for key customers, prompting a more cautious investment approach.

To enhance competitiveness, Samsung plans to deploy R&D personnel to factories, improving collaboration with production teams.

Earlier, Samsung aimed to reach 140,000-150,000 units per month by late 2024 and 200,000 by 2025, driven by competition and positive client feedback. During a Q2 earnings call, the company announced plans to mass-produce HBM3E, expecting it to account for 10% of HBM sales in Q3 and 60% by Q4.

However, longer-than-expected quality testing for the latest HBM3E products led to a conservative adjustment in production plans. Samsung’s 2025 capacity target has been revised from 135-140 billion GB to around 120 billion GB.

An industry source said, “Samsung has decided to slow down equipment investments due to sluggish demand,” adding that further investments will be reconsidered after starting mass production for NVIDIA.